US Solar Investment Tax Credit White Paper

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US Solar Investment Tax Credit Extended in Congressional Spending Bill - FREE WHITE PAPER

Both houses of Congress passed a large COVID-19 and funding bill in late 2020 that includes a significant energy package with potential to impact the solar photovoltaic pipeline through 2023.

The legislation includes:

  • a two-year extension of the solar Investment Tax Credit (ITC).
  • a one-year extension on wind production tax credits (PTC).
  • funding for energy research and development programs, among other provisions.

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Original Timeline

In the original timeline, the solar ITC was scheduled to step down from 26% to 22% in 2021. For projects commencing construction in 2022, the tax credit would further step down to 10% and would be available only for nonresidential projects.

Recent Approval Timeline

The recent approval will maintain the tax credit at 26% until the end of 2022 for both residential and nonresidential projects, step down to 22% in 2023, and finally down to 10% for nonresidential projects while being eliminated from residential projects. 

Download this whitepaper to:

  • Find out if the extension of the solar ITC is likely to affect the photovoltaics (PV) pipeline for 2021 as nearly 10 GWdc of projects that are slated to be completed in 2021 are already under construction.
  • See if the extension allows companies that begin installations in 2021 will have a four-year window to put their projects in service and take advantage of the ITC.
  • Discover if smaller developers will continue to face challenges in securing tax equity capital.
  • Find out if the extension of the ITC will boost demand for PV plus storage projects in the short term, and see if research and development (R&D) investments may improve battery storage economics in the long-term.
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