Hello Solar Enthusiasts!
As someone immersed in the solar industry and monitoring the relevant trending developments, I’d like to discuss something paramount for anyone considering installing solar panels for your home, or even larger scale solar projects. The Inflation Reduction Act, abbreviated as IRA, should be on the radar of anyone keen to explore the possibilities in solar.
Coming from a fossil fuel background, Trina Solar’s Strategic Development Manager, Robert Gibbons, also a respected figure in the industry, is of the view that policy changes within the IRA could build the future of solar companies in the U.S.
Gibbons rightfully points out the significant benefit of the IRA as it increases the visibility of tax policy on potential solar phase-ins. Imagine a ten-year span of reassurance about the continuance of tax credits! Such policies can potentially foster vigorous growth of solar companies and make solar array for home a common sight in the U.S.
The expiry of the federal solar tax credit was a blow to solar projects, but Congress rose to the occasion by increasing the credit from 26% to 30% and extending it until 2032. The growth of solar companies was imaginable primarily because of these conducive policies and affordable solar panels sourced from China.
Gibbons argues that with a looming combination of increasing interest rates and structural constraints of interconnection queues, the IRA is much needed to facilitate solar project initiation and development. An essential part of IRA includes transferability of tax credits, which is crucial for the monetary viability and hence the success of a solar project.
The IRS recently outlined the domestic content credit that a clean energy project may avail for incorporating equipment manufactured in the United States. This surge in interest for U.S. manufactured solar modules has led to the construction of a solar module manufacturing facility in Wilmer, Texas. Such advancements are crucial for the sustainable development of solar manufacturing in the U.S.
As promising as all this sounds, Gibbons advises caution. He considers the IRA and IRS rules to be key drivers of the U.S. solar industry but is aware that support from politics can’t be a forever thing. The industry has to thrive on its own, eventually. However, with the IRA phasing out by 2032, it ideally should have aided in setting up a large, sustainable solar generation and manufacturing industry.
In case more assistance is required post-2032, surely no politician would want to halt the progress of a prospering industry like solar, right? After all, a thriving solar sector can bring exhaustive benefits to us, the environment, and the economy!
Isn’t it heartening to see policies supporting the cause of solar energy? Especially if you are contemplating a solar company’s help to install solar panels for your home, such policy support is indeed cause for optimism.
Stay tuned to this space as I continue to track and share the latest insights on all things solar. Keep Shining!
Original Articlehttps://pv-magazine-usa.com/2024/05/28/guaranteed-and-transferable-tax-benefits-will-make-the-pv-industry-too-big-to-fail/
