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 hello@terraverde.energy.

Stay in the know with our latest blog posts!

Select list(s) to subscribe to


By submitting this form, you are consenting to receive marketing emails from: TerraVerde, 1300 22nd Street, San Francisco, CA, 94107, http://terraverde.energy. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact