As the legislative year comes to a close, the solar industry is disappointed to hear the news this week that Congress has not to passed the extension of the full 30% Solar Investment Tax Credit (ITC); it will now be reduced to 26% in 2020 and go down to 22% next year and down to 10% in the following year.
This ITC was established in 2005 and has enabled the solar industry to grow to 240,000 jobs, accounting for 1 in 50 new jobs created in 2016 alone. On average, the ITC supported a 52% growth rate of solar installations since it was enacted. Ultimately, what we loved the most about the ITC is the savings it gave to our customers, allowing for greater and easier access to clean, affordable solar energy.
SEIA and Wood Mackenzie expected that the extension of the 30% credit for 5 years would result in 82 additional GW of solar installations and 50,000 new jobs by 2030. These numbers are a testament to the drive and passion of our industry to serve our customers. We stand with SEIA and the rest of the solar industry in 2020, and we encourage our elected leaders to restore the full 30% ITC as soon as possible.
Our team at Inovateus Solar is well-accustomed to new challenges on “the solar coaster.” We’re buckled up for the ride, and we expect 2020 to be our biggest year yet. While the 30% ITC has not been renewed, you can count on the entire Inovateus team being renewed in 2020 and continuing our mission of investing in the energy future of our customers and building a brilliant tomorrow for everyone.
Please reach out with any questions on the finer points of the impact of the ITC step down to 26% from 30%.
Happy holidays from our team to yours!
