The force was certainly with renewables.
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On December 18, 2015 Congress approved and the President signed federal budget legislation that will extend the Solar Investment Tax Credit previously set to expire in 2016.
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AWEA credits the PTC for spurring a more than 300 percent increase in USA wind power since 2008-from 16.7 GW to 69.5 GW by the third quarter of 2015. However, to maintain the benefit of the preferential construction-year credit percentage, the project must be placed in service before January 1, 2024. 2016 promises to double the total amount of solar installed in the U.S. (Think about that: Double!) There are more than 13,000 megawatts of wind power in the works, too, and much more likely to come, now that Congress has extended the PTC. It forecasts that commercial projects will increase by 51 percent and utility-scale arrays will grow by 73 percent.
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“Solar power in this nation will more than triple by 2020, hitting 100 gigawatts”. More than $40 billion of investment will be “directly attributable to the passage of the extension”, said Shiao. Congress’s move to extend ITC shows that the U.S. is committed to support renewable energy, not only on the global stage but within the country as well.
Tom Werner, CEO of manufacturer and system developer, SunPower, said the extension would have positive consequences beyond the solar industry.
ISS is one of the few, if any, solar farm companies in the US that bet in a continuation of the solar industry post ITC, so no other company has the magnitude of projects that ISS has in the pipeline. Consumers, both homeowners and businesses, had been scrambling to install systems before the end of next year so they could claim the subsidy at today’s level.
British Energy Secretary Amber Rudd reinforced this message three months later during the annual conference of the Conservative Party in Manchester, saying there was no “magic money tree” to finance such subsidies, and that the solar energy industry will thrive without help.
Katherine Hamilton, a partner with 38 North Solutions, called the bill “sausage-making at its most intense”. “We look forward to building a future with more affordable, reliable, clean wind energy”. Extensions for renewables and efficiency tax credits were key sweeteners.
Julia Hamm, president and CEO of the Solar Electric Power Association, said in a statement that the five-year ITC extension “will allow for broader participation and deployment of solar applications across the country, especially in regions where local markets are less mature”.
In early December, world leaders agreed to a framework for lowering global greenhouse gas emissions – a deal that will leverage hundreds of billions of dollars in private investment for clean technologies.
Take job creation. The solar industry alone already employs 200,000 workers and anticipates bringing another 140,000 on board because of the tax credit’s extension.
Siemens Canada, which makes wind turbine blades in Tillsonburg, Ont., does not yet ship them to the United States, but is considering it. “We are evaluating supporting export to the USA given the recent extension of the [tax credit]”, Siemens vice-president David Hickey said.
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“This is great news for Vermonters looking to repower our state with clean energy”, Peterson said.
