Investors are operating under the assumption that the solar ITC is stepping down next year, but is that the correct assumption? 231 mayors may disagree
Over 200 US mayors have asked Congress to extend the solar Investment Tax Credit (ITC) by five years, particularly focusing on creating jobs and attracting investment.
A bipartisan group of 231 mayors from small and large cities across 39 states request Congress pass the Renewable Energy Extension Act (HR 3961/S. 2289), which would bring about the ITC expansion. In excess of 60 mayors that support the extension are from districts with a Republican member of Congress.
The letter opened with: “Mayors across the country increasingly support renewable energy. The communities we serve, including residents and local businesses, have seen the rewards of investing in technology like solar. Year after year, we have seen the number of solar installations grow in our towns and cities. Adoption of renewable energy has accelerated as a result of policies such as the Investment Tax Credit, which has made it possible for more people, in more places, to choose solar energy and lower electricity bills.”
As indicated by an SEI discharge, mayors have progressively needed to manage extraordinary climate from serious tropical storms, out of control fires and dry spells to polar vortices, driving the need for sustainable power sources. Yet, they are prodded on by the effects that solar, driven by the ITC, may have on communities. For instance, examination by SEIA and Wood Mackenzie Power and Renewables have discovered that the ITC augmentation could add 113,000 job opportunities and US$87 billion in investment by 2030.
“Mayors are increasingly turning to solar energy to fight the effects of climate change and generate millions of dollars of private investment in their cities. We’re thrilled to have their support as we fight to preserve one of the most successful clean energy policies in U.S. history.â€
Abigail Ross Hopper, President/CEO of the SEIA
Solar is competitive without the ITC, however, expelling the ITC could crush the business case for some projects in the pipeline. In addition, the ITC has to a great extent been considered a significant achievement and is said to have driven US$140 billion in private investment, as per SEIA.
The energy storage industry is lobbying for its own ITC. As of now, the ITC applies to energy storage in the event that it is installed with a PV framework. The Energy Storage Association is calling for support by means of Twitter utilizing #StorageITC.
WoodMackenzie and SEIA found that the US has a record-breaking 37.9GW of utility-scale solar projects in the pipeline after 11.2GW of new projects were reported in H1 2019.
