In the U.S., solar technology is developing rapidly, and the future of solar energy looks brighter here than in other nations. The extension of the Solar investment Tax Credit (ITC), which saves users who introduce solar energy systems up to 30 percent, was hailed by renewable energy advocates as a watershed moment, guaranteeing savings beyond 2016, when the program was at first set to lapse.
Let’s Look Out The Nitty Gritty
The Solar Investment Tax Credit will benefit 30% of overall solar business sector—utilities, businesses, and residential users—by 2019.
There Was A Dynamic Reduction Found In The ITC
The initial Solar Investment Tax Credit will be extended at the same annual percentage rate through 2022, requiring that any project must be finished by 2024 to secure the ITC credit.
The ITC has made general development of the solar industry far more feasible, prompting sharp decreases in the expense of solar energy. Since the implementation of the ITC in 2006, the normal expense of implementing solar energy has dropped by more than 73%. Utility-scale costs have dropped by more than 64% since 2010, achieving a rate of $1.49 per watt in the second quarter of 2015, while private expenses have dropped 48-50% since 2010, down to $3.50 per watt in Q2 of 2015.
Some analysts had projected that ending the expense credit would radically disrupt the solar industry, causing businesses to fail and resulting in employment decreases inside the business. However, because of the extension, we now anticipate prolonged and prosperous development of the solar sector.
What Amount Of Development?
The Solar Energy Industries Association (SEIA) predicts that the extension will permit the following to happen:
- Installed solar power capacity in the U.S. will surpass 100 gigawatts by 2020.
- Installed solar power will make up more than 3.5% of the aggregate power grid.
- Solar energy is projected to generate 30 billion dollars yearly by 2020.
- The solar industry alone will add 420,000 jobs.
Moreover, the ITC expansion will help the country meet clean power objectives announced by President Obama, reducing carbon emissions by 32% by the year 2030 compared to 2005 levels.
The ITC Is One Enormous Reason Why Solar Power Is So Widely Available Today In The U.S.
The ITC extension motivates everyone to take the leap to clean energy. If you’re still searching for incentives to go solar, learn more about the ITC extension. Solar power is growing more popular and less expensive all the time for U.S. users, whether commercial or residential.