Solar Power Expected to Continue Growth
Driven by a dramatic decline in installation costs and continued incentives, solar photovoltaic (PV) installations across the nation have dramatically increased in the past decade.
INVESTMENT TAX CREDIT
In December 2015, Congress agreed to extend the 30% solar investment tax credit on a graduated scale. The solar investment tax credit remains at 30% until 2019. In 2020 it will drop to 26%, and in 2021 it will drop to 22%. After 2021, the tax credit will drop permanently to 10% for commercial solar projects and 0% for residential. These tax credits have helped make solar power fiscally feasible for entities such as K-12 schools, municipalities, and commercial facilities. In addition to these tax credits, many states have some sort of additional rebate or incentive for solar projects. Even without rebates and incentives, solar power is expected to become the world’s cheapest form of electricity due to an expected rise in electric rates, net metering opportunities, and energy storage technology options.