Tax Credit System Extended Until 2020
The cost of solar panels in California just got more affordable thanks to a tax credit extension. The investment tax credit system has recently been extended to 2020, bringing massive support to America’s wind and solar capacity. The extension will even generate over 100,000 new jobs.
Eligible home and business owners could receive a 30-percent credit to help curb the cost of solar panels in California. The tax incentive has driven solar installations across the country, accounting for a whopping 1,600-percent growth since the tax credit’s introduction in 2006. Although it was set to expire in 2016, consumers now have more time to utilize the tax credit.
The Tax Credit Extension Helps Reduce the Cost of Solar Panels in California
The extension was quite unlikely until a few weeks ago and the effects were already beginning to show through drops in investment. The ramifications would have branched out of the local market and affected an overall 10% decrease in solar installation worldwide.
Fortunately, ITC was extended and it will remain at 30% until 2020.
Forecasts have changed. The USA’s solar in 2022 could very well reach 95 MW, which is three times the current size. To put it into perspective, it means the U.S. solar will be able to power 19 million homes and it will stand for 3.5% of total electricity generation. In contrast, solar accounted only for 0.1% in 2010. From the ecological standpoint, the solar generation will annually offset the amount of CO2 produced by 26 coal-fueled power plants.
The ITC extension, according to Solar Energy Industries Association (SEIA), will generate around 140,000 jobs or more, while it has created about 200,000 jobs so far.
However, the extension came with a compromise – Congress has lifted the 40-year ban on crude oil exports. Some environmentalists and energy analysts have brought up their doubts concerning the merits of the compromise.
What is good about the exchange is that 5 years more buys time for wind and solar to get on a par with or even surpass conventional generation without subsidy. Plus, the cost of solar panels in California has been dropping steadily, and the ITC extension is expected to make wind and solar the cheapest ways of power generation in the U.S. and the world.
OPEC’s Secretary General has stated that lifting the oil export ban will produce negligible effects on the increase of carbon emissions and commodities market. It is not expected that U.S. oil production will see a boom due to the ban lift, but the time allowed for wind and solar to grow will reduce CO2 levels released into the atmosphere.
Looking for Solar in Poway?
Now that both residential and commercial projects are given more time to enjoy the benefits and reduced cost of solar panels in California, are you thinking of installing a solar system at your home or office in Poway? If you are, make sure you contact Semper Solaris. If you are not sure, again, don’t hesitate to contact Semper Solaris and find out more about how you could benefit from solar and use the programs and incentives to your advantage. Semper Solaris is a San Diego-based, veteran-owned and operated solar contractor which stands for all-American values and trust. With Semper Solaris, customers get expert technicians, the best-in-class solar panels and superior customer care at their disposal. Get started with your California solar power by contacting Semper Solaris right away.