On August 17th, 2021 the Biden Administration released an Issue Brief on solar energy research, deployment and workforce. In this brief, there is a discussion about extending the solar ITC to help reach clean energy goals by 2035. So what exactly does this mean? Let’s talk about clean energy tax credits.
Incentives:
One of the biggest benefits of going solar is being able to take advantage of the HUGE incentives from both the Federal & State government. Currently, the Federal government is giving back 26% of the total system cost in the form of a tax incentive. This doesn’t even include the additional state incentives that vary due to location! Extending the program would be significant. Currently it is planned that after December 31st, 2022, the Federal Tax Credit will be lowered to 22%. It will be completely eliminated in 2024. This means that making the switch to clean energy is time sensitive.
Increase in Jobs:
In this briefing, Biden’s administration also addressed several other benefits of the solar energy movement, such as the large amount of jobs that would be added. The briefing states “employment in the solar industry has been one of the fastest growing sectors over the past decade – increasing by 150 percent between 2010 and 2020 across all 50 states, the District of Columbia, and Puerto Rico. The relatively flat growth in jobs over the past several years is due to an increase of labor productivity in both residential and utility- scale solar deployment since 2010 – at 19 percent and 32 percent, respectively. These workers are employed by over 10,000 solar businesses across the country – many of which are small businesses.” Recently, the growth has leveled due to the economic shutdown caused by the COVID19 pandemic, illustrated in the graph below.
The Solar Energy Industry Association president and CEO, Abigail Ross Hopper rejoiced about this briefing saying “The Biden administration’s report today on solar energy shows that with the right policies in place, solar will help tackle the climate crisis, build a strong U.S. manufacturing sector and create hundreds of thousands of jobs. The Issue Brief clearly demonstrates the massive growth in solar over the last decade and charts a course for solar to grow market share and reduce emissions of greenhouse gases.”
She continued to say “The report also makes it clear that meeting the Biden administration’s goal for a zero-emissions electricity grid will require billions of dollars of investment and market opportunities through 2050 across all clean energy generation, including energy storage, electricity delivery, operations and maintenance, as well as community solar and solar for low- and moderate-income communities”. Representative Hopper went on to say ““President Biden also plans to extend the solar Investment Tax Credit, build U.S. manufacturing, accelerate transmission and storage expansion and build diversity, equity, inclusion and justice goals into this transition to a clean energy economy. Good trade policy also will be critical to the president’s climate goals. We look forward to working with the administration and bipartisan members of Congress on these critical policy issues, including by advancing infrastructure legislation and the president’s Build Back Better plan. This report shows that the vision can become a reality, and we can’t wait to see that happen,”.
The Solar Movement is Growing:
The influx to solar since this program was announced has been huge. Solar is currently providing about 3% of the U.S. electricity supply. The Biden administration’s goal is a rise to 40% by 2035. It is already the fastest growing source of new electricity generation in the nation. The continuous energy investments proposed by the Biden administration will only further support the rapid development of solar and help the US build a zero carbon and resilient clear energy system. Secretary of Energy Jennifer Granholm said “The study illuminates the fact that solar, our cheapest and fastest growing source of clean energy, could produce enough electricity to power all of the homes in the U.S. by 2035 and employ as many as 1.5 million people in the process.”
The Solar Movement is happening. The benefits in the form of tax incentives will only get smaller as the years pass. The time to change to renewable energy and save thousands is NOW. Call us today for more information!
