In December 2015, Congress voted to extend the U.S. Solar Investment Tax Credit for both commercial and residential projects through 2019. Established by the Energy Policy Act of 2005, the initiative provides a 30% tax credit on the value of solar projects.
The extension should have a favorable impact on the solar industry, according to Solar Energy Industries Association. Here are four major benefits that are expected.
Photovoltaic (PV) installations are anticipated to rapidly increase over the next three years. In April, the U.S. reached one million solar installations across the country. The industry expects that number to increase to two million by 2018.
The extension is expected to create 222,000 solar jobs over the next four years, which would bring the total industry employment to 420,000 by 2020.
By 2020, it’s estimated that the U.S. solar industry will contribute more than $30 billion annually to the U.S. economy.
By 2021, U.S. solar generation should offset more than 100 million metric tons of carbon dioxide a year. The credit extension is expected to help reduce those emissions by roughly 25%.