As part of a wider stimulus package, congress passed a bill on December 21, 2020 that included a substantial extension to the solar Investment Tax Credit (ITC).
The ITC has been a long standing Federal incentive that extends project owners a tax credit of 26% of the costs for installing solar PV and solar + battery energy storage projects. (note: the battery project must also be part of a new solar PV installation to qualify for the ITC, stand-alone battery projects and retrofit projects adding a battery to an existing solar PV system do not qualify)
Prior to this recent bill, the ITC incentive level was scheduled to step down from 26% for projects commencing construction in 2020, down to 22% for projects commencing construction in 2021, resting at 10% for non-residential projects thereafter, and 0% for residential projects.
This new bill extends the timeline out to the following new schedule:
- 26% for projects commencing construction in 2022
- Down to 22% for projects commencing construction in 2023
- Resting at 10% for non-residential projects, and 0% for residential projects thereafter
This extension will provide a significant boost to the financial profile of solar and solar + battery projects over the next few years. If you’re interested in an objective assessment of your project opportunities, TerraVerde Energy can support your organization with a detailed technical & financial feasibility analysis of the potential financial and backup power benefits of solar + battery projects at your facilities. To get started, reach out to us at firstname.lastname@example.org.