10-year 30% solar ITC back on the table in surprise Senate deal
On July 27, Senators Joe Manchin and Chuck Schumer announced a reconciliation agreement that they now call the “Inflation Reduction Act of 2022That includes about $370 billion in energy and climate spending, according to Politics.
The Inflation Reduction Act includes a 10-year extension of the solar ITC by 30% and may include direct payment for non-profit entities. According to ROTH Capital Partners, the ITC can reach 50% for larger projects, depending on the domestic product usage and project location. The US Energy Information Administration released a report today finding that extending the ITC through 2050 would: increase solar generation by 10%.
The reconciliation law also introduces a 30% ITC for stand-alone storage, which the industry has pushed to reduce the cost of this crucial technology. Production credits for solar cells (4¢/W) and modules (7¢/W) also topped the list.
“Inflation and energy are top priorities for Americans, and we have maintained that lawmakers should stay at the negotiating table and negotiate a deal on federal investment in clean energy to lower the cost of electricity for homes and businesses,” said SEIA president and CEO Abigail Ross Hopper in a statement. “With long-term incentives for clean energy deployment and production, the solar and storage industry is poised to create hundreds of thousands of new jobs and get to work building the next era of American energy leadership. This is a crucial opportunity not to be missed, and now Congress must close the deal and pass this legislation.”
The bill is expected to reach the Senate floor next week.