The Investment Tax Credit (ITC) for solar power has been in the news a lot lately. On April 4, more than 100 Representatives called for legislation to extend the ITC as part of an effort to fight climate change. On the same day, Pennsylvania Rep. Mike Doyle (D) introduced a bill that would allow the ITC to cover energy storage as well. It is perfect timing since the 30% tax incentive for solar is set to begin sunsetting at the end of 2019.
There’s good reason to extend it, too. The ITC has helped lower people’s energy costs across most of the US and helped the industry experience a 50% compound annual growth rate. It has expanded access to low-cost rooftop solar power as well, creating hundreds of thousands of jobs in the process—more than paying for itself over the years. All of which has helped drive down the cost of solar power for everyone.
But now the popular incentive is facing its latest inevitable end. Over the next few years will steadily drop for homeowners until it phases out in 2022.