History Of The Solar Tax Credit
The History of the Tax Credit
The Solar Investment Tax Credit (ITC) created a new phenomenon of renewable energy in the United States. The goal of the ITC was to allow renewable energy to become more accessible to purchase.
Up until the 1990s, hydropower and solid biomass were among the most common renewable energy sources. By the 1970s, scientist became concerned about the volume of greenhouse gases that were affecting the atmosphere. Clean energy was not a priority as the concept of humans inducing climate change was not introduced until 1988. NASA climatologist Dr. James Hanses announced to the US Senate that “The greenhouse effect has been detected and it is changing our climate now.” It wasn’t until 2006 when the ITC was enacted to induce the growth of solar energy to the United States.
The solar industry is predicated to continue to boom within the next year. The tax credit has dropped to 26 percent this year but will be down to 22 percent in 2021.The time to go solar is now, as you will receive the most tax credit offered prior to next year. The solar industry will continue to grow as quickly as technology is. The SEIA predicts that “Over the next 5 years, total installed solar capacity will more than double, with cumulative deployment topping 100 GW by 2021.” As solar becomes more popular, incentives to going solar my not have as many opportunities as it does today. This is something to think about while you are making your decision.
Keep in mind these things when considering receiving the tax credit:
- The federal tax credit is accessible for both residential and commercial customers.
- The tax policy will continue to stabilize the solar industry including jobs and investments.
- The federal tax credit is applied to homeowners who have purchased solar systems and have them installed.
The best option to understand the tax credit is to talk to a consultant to help you discover all that solar energy has to offer. We will be honest in the advantages of purchasing solar and communicate what to expect during the process. Infinity Energy offers free energy estimates to see if your home qualifies for solar. Fill out our form or call us at 888-244-2513.