The biggest solar incentive is getting a boost instead of a setback thanks to the $900 billion COVID-19 relief package.
Signed by the President on Monday, December 28, the massive piece of legislation will extend the investment tax credit (ITC). The ITC was supposed to step down from 26% to 22% in 2021 and then completely disappear in 2022.
The New Solar ITC Timeline
Now, under the new bill, the ITC will be 26% for all 2021 and 2022 projects before stepping down to 22% in 2023. In 2024, the ITC will end for residential projects and fall to 10% for commercial projects.
“This is huge!” says Paul Lesure, President of Green Mountain Solar. "We’ve seen a decrease in the net metering incentive rates in Vermont recently that would hamper solar adoption, so we’re excited to see legislation that will foster solar growth on a national level. We hope that this kind of momentum will have ripple effects to make solar even stronger here in Vermont.”
And it makes sense that solar is included in the COVID-19 relief bill. Research shows that local solar reduces electricity costs for everyone—even customers who don’t have solar themselves.
By Julia Westbrook
Talk to a solar advisor today to find out how these incentives help keep solar affordable.