Hello everyone! Today, I’m going to delve into an interesting facet of the solar world that you might not be familiar with. If you’ve ever thought of installing solar panels for your home or looked into solar companies to help transition your current energy supply, this is important information for you.
The Internal Revenue Service and Treasury Department have recently presented more guidance for what constitutes a ‘qualified energy community’. This is a big deal as projects in these energy communities can qualify for production and investment tax credit bonuses. This is part of the Inflation Reduction Act and it’s targeted at communities that might face challenges transitioning away from fossil fuels.
But how are energy communities defined? They fall into three categories:
1. Brownfields: These are sites that might have been polluted or used to be mining lands.
2. Certain metropolitan statistical areas: These areas have been selected based on unemployment rates.
3. Coal communities: These are regions related to the extraction, processing, transport, or storage of coal, oil, or natural gas.
Between January 2023 and late May 2024, 466 new counties will be labeled as energy communities. While privately owned residential projects wouldn’t qualify for the energy community bonus, they do qualify if they’re part of a commercial portfolio.
The bonus tax credit is also increased by an extra 10% if prevailing wage and apprenticeship standards are met or 2% if those standards aren’t met for projects that are over 1 MW.
This step is a significant stride in bringing solar array for home and businesses as it provides incentives to implement a move towards renewable energy. It also brings clearer understanding for solar companies on where they can focus their efforts and expertise to bring affordable electricity, create good-paying jobs, and maintain pollution-free skies.
With the solar industry growing at a rapid pace, these new designations are a significant stride in the journey, especially for solar companies. They can target their expertise and efforts towards those communities that need it the most. So, if you’ve been considering the idea of a solar array for home, this might be the best time to make the switch.
In closing, the message is clear: solar is now more accessible and affordable than ever, particularly in qualified energy communities. It’s a great opportunity for homeowners and businesses alike who are considering solar panels for their home or enterprise.
Stay tuned for my next post where we will discuss how to choose the right solar company for your solar needs. Until next time, keep shining!
Original Articlehttps://pv-magazine-usa.com/2024/03/25/irs-releases-updated-guidance-on-energy-communities/
