The solar industry is celebrating the passage of the tax extenders package on Friday, December 18, 2015 that included several clean energy credits. The omnibus appropriations bill included a 5-year solar investment tax credit (ITC) extension. The 30 percent ITC for solar will be extended for another three years. It will then ramp down to 26 percent in 2020 and 22 percent in 2021 and then remain at 10 percent permanently beyond 2022.
“This historic vote brings the solar industry to the forefront of the conversation about American energy. The ITC extension makes America and its solar industry the world’s preeminent producer of clean and affordable energy,” said Rhone Resch, president and CEO of the Solar Energy Industries Association (SEIA). “We commend members of Congress in both parties for taking this bold step and we look forward to delivering on the promise that this policy now offers all Americans.”
Resch noted the ITC will will lead to more than $133 billion in new, private sector investment in the U.S. economy by 2020 with much of this growth will coming from small businesses, which make up more than 85 percent of America’s 8,000 solar companies.
“With Congressional approval on a five-year extension of the Solar Investment Tax Credit (ITC), we have a fresh runway that will only accelerate the global energy transformation to clean, sustainable sources such as solar,” said Tom Werner, SunPower president and CEO. “The ITC extension provides a sense of certainty that allows for new investments that might not have been possible in its absence. We thank our elected representatives for supporting the continued growth of solar power in the U.S. – for the health and prosperity of our communities, our country, and the planet.”
Jason Bak, chairman and CEO of Finavera Solar Energy commented, “The extension of the solar ITC provides long term certainty for the U.S. solar industry in general, and for our San Diego-based subsidiary Solar Alliance of America in particular. Our customers in southern California have benefited from the ability to offset the purchase of a residential solar system with these tax incentives in the past and this extension will give new customers that same incentive. The Solar ITC extension passed today will have a positive impact on our bottom line and will drive an increase in revenues that will benefit shareholders. It also provides the ideal platform for us to aggressively move forward with our expansion plans for Solar Alliance.”