Last Updated: July 8th, 2020 at 3:15 pm
Read Time: 2 Minutes
With the solar Investment Tax Credit (ITC) set to begin stepping down in value at the end of 2019, a bipartisan group of 231 mayors across the country has stepped forward and is urging Congress to pass the Renewable Energy Extension Act, a five-year extension of the ITC.
The mayors’ letter to Congress reads in part:
“As elected officials, just like us, you understand the need to support the well-being of your constituents with a strong local economy. Solar energy is a low-cost solution that saves our residents money on their electricity bills and provides well-paying job opportunities in our communities, all while helping keep our environment clean. Local governments, state legislatures, and policymakers in Washington must work together to do what’s best for the people we serve.”
Under existing legislation, the 30 percent tax credit currently in place would go to 26 percent in 2020, then to 22 percent in 2021. After that time, the ITC will expire altogether for homeowners, while the rate will fall to 10 percent for business owners.
What the ITC has meant for American jobs, investment
The solar tax credit has been of great benefit for the U.S. since it first passed in 2006. Since that time, it has helped create more than 200,000 American jobs, added $140 billion in private sector investment, and grown solar deployment by 10,000%, according to statistics provided by the Solar Energy Industries Association. If extended, recent analysis from SEIA and Wood Mackenzie Power & Renewables finds that the ITC could create an additional 113,000 jobs and $87 billion in economic investment by 2030.
Those stats are a big part of why POWERHOME SOLAR supports the extension of the ITC. By itself, solar has proven to be a great investment for homeowners and business owners from both financial and environmental perspectives. We love seeing customers have the chance to save money on their electric bills and do something good for the planet’s health. Beyond that, the ITC gives solar customers the potential added benefit of seeing cost savings on the purchase of their system.
As concern and evidence of climate change rises, it’s clear that solar and other forms of renewable energy are here to stay, no matter what happens with the ITC. And because of it, POWERHOME is here to stay too. We stand for making a difference in our customers’ lives, one solar panel installation at a time.
How you can help #DefendTheITC
Should you feel strongly about defending the solar tax credit, we ask you to reach out to your local members of Congress, and tell them to join this group of mayors and many others in preserving the many benefits of this public policy.