Solar ITC Extends at 26% For Two More Years, Included in United States COVID Relief Pkg

Dec 24, 2020 12:42 PM ET
  • The Solar Investment Tax Credit (ITC) has actually been extended at 26 percent for 2 more years. The ITC for planetary systems as well as brand-new funding for power storage space study has actually been included in the US COVID-19 relief package, the Congress accepted.

USD 1.4 trillion government costs plan together with a USD 900 billion COVID-19 infection alleviation costs consists of the solar ITC, which was set up to go down to 22 percent in 2021, will certainly remain at 26 percent.

Alongside, the wind sector additionally got a minimal extension of its production tax obligation credit rating.

The solar projects in all market sectors consisting of residential, commercial, industrial, as well as utility-scale that start construction in 2021 as well as 2022 will certainly still be able to obtain a tax obligation credit scores at 26 percent. All markets will certainly drop to a 22 percent tax obligation credit in 2023, and the property market will go down to 0 percent while the industrial and also energy markets will certainly sit at a long-term 10 percent debt start in 2024.

The USD 900 billion COVID plan additionally consists of funding for dispersed power implementation along with support to give better accessibility to government lands for sustainable projects. The 5,593-page legislation-- which is stated to be the lengthiest expense ever gone by Congress-- is quickly expected to be signed into regulation by President Trump.

Abigail Ross Hopper, president and also CEO of Solar Energy Industries Association (SEIA) mentioned, "This pandemic has actually taken a countless toll on American families, and our inmost sympathies are with those that have actually lost enjoyed ones and those that are enduring financially because of the ongoing crisis. Over the next few years, we have an opportunity to construct a stronger, extra trusted, and extra equitable American power economy and also the activity Congress is taking today is a helpful deposit."

" We are heartened to see Congress step up to supply Americans with some relief after our nation has actually been bogged down in a public health and also economic catastrophe," she added.

The Better Energy Storage Technology (BEST) Act accredits USD1 billion over 5 years for government financial investments into energy storage space R&D. The CEO of BEST, Kelly Speakes-Backman commented, "The addition of BEST Act as part of the year-end spending as well as relief bundle is more proof of the bipartisan, bicameral support for power storage space to improve grid reliability and also flexibility."

"We expect working with DOE as well as Congress to ensure this crucial program is completely moneyed and also operates efficiently. This demonstration program developments storage space modern technology development as well as grid operations and also sets the foundation for future storage deployments to shield our electric framework versus interruption as it makes it possible for a zero-carbon power supply mix," she added.

"These plans will certainly aid get people back to function, accelerating our financial recovery as well as attaining greenhouse gas discharges reductions", said Gregory Wetstone, head of state and CEO of the American Council on Renewable Energy.

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