Today (Sept. 15) Bloomberg New Energy Finance (BNEF) and the Solar Energy Industries Association (SEIA) introduced a new report that anticipates the U.S. will see substantially more solar installations—and jobs—if the federal solar Investment Tax Credit (ITC) is extended at its current level. The report, commissioned by SEIA, anticipates that extending the ITC—as is—by 5 years would lead to more than 20 additional gigawatts of solar power installed in the U.S. by 2022.
“With a proposed five-year federal ITC extension, we anticipate an additional 22 GW of solar will get built by 2022,” said Bloomberg analyst Madeline Yozwiak. "Without it, we still anticipate solar growth in the next decade, but it will be a much rockier ride."The most acute impact without an extension would be felt in 2016 when the ITC is set to sunset abruptly for residential solar and drop to 10 percent for commercial solar power. The potential sunset will lead to a sharp in solar installations in 2017 as developers attempt to scramble to complete projects with contracts before the sunset. “That pipeline depletion, and weaker economics, will result in a drop of roughly 8 gigawatts (GW) in annual installations through 2017,” SEIA said the report found. It added that such a drop would reduce solar installations in the U.S. to its lowest annual level since 2012.
“The good-paying jobs of more than 100,000 Americans and thousands of U.S. companies—many of them small businesses—are at risk if the ITC is not extended,” said SEIA President Rhone Resch. “As the voice of the solar industry, SEIA will not rest until Congress fully understands the importance of this critical policy. The time to act is now.”
If the ITC isn’t renewed 80,000 jobs across the U.S. could be lost, according to separate analysis conducted by SEIA using the Jobs and Economic Development Impacts model (JEDI) developed by National Renewable Energy Laboratory (NREL). When looked at in the bigger context of other jobs that rely on the solar industry, the SEIA analysis found that more than 100,000 jobs would perish without an extension.
To help support the solar industry and the solar industry organizations have created WeAreTeamSolar.com where visitors can write their Congressional delegation in support of an extension.Tweet