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Solar Renewable Energy Tax Credits and Incentives for Investors and Developers

Energy tax credits and incentives are only meant to provide a support for those investors, and project developers that want to engage a business or project with solar renewable energy technologies.



Investment Tax Credit (ITC) is one of the most important federal policy in the United States that provide this support to people engaging on solar related energy sources. ITC is a part of SEIA (Solar Energy Industries Association).

SEIA is the national trade association of the United State solar energy industry which is helping and working with companies that are engaging in this industry to grow and expand the usage of this renewable technology.

What offers ITC to you?

The ITC offers a credit for the amount of 30% for solar systems in business and residential properties, making it a great ally not only for businessmen but for families that want to be part of this innovation.

Since the creation of ITC in 2006, the solar installations have grown by over 1600 percent meaning in a yearly growth rate of 76% which means the increasing demand for this renewable energy.

The existence of ITC is going to cause in a near future that companies invest in technological innovations that will reduce costs for consumers.

How Does Solar Renewable Energy Tax Incentives Work?

Solar renewable energy tax incentives work by reducing the income taxes that a company or person claims for the credit that would eventually pay to the federal government, is based on the amount of money invested in solar properties.

The ITC is by now 30% of the investment for both business and residences locating it in the higher save percentage that would ever be, in 2020 the percentage will drop to 26%, and for 2021 will drop to 22% of the investment.
In 2015, they included a multi-year extension of credits for both residential and business, nowadays ITC is working on a new standard that will establish what it takes to be considered an energy property.



Impact of ITC extension

As mentioned before ITC it has been one of the most important policy mechanisms to incentivize the implementation of solar renewable energy technologies in houses and business in the United States.

Due to the multi-year extension mentioned before it will have a huge impact on solar technologies prices that according to their expectations are going to fall, even more, this means the technology is going to be more attractive and affordable to get.

They expect for 2020 reach about 100 GW in solar energy and the employees working on it to double in size for a total of 420,000 in the same period of time.

Besides that, they stimulated 140$ billion in economic activities related to solar energy which is a great boost for the general financial situation of the country.

With everything that has been said, it can be concluded that stable, long-term federal tax incentives can boost economic growth and, at the same time, reduce prices and generate more jobs in this fast-growing industry.

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