Every year, the Solar Energy Industries Association (SEIA) compiles a list of potential new incentive programs that may be proposed by state or federal lawmakers. There’s no guarantee that every state will implement these programs, or that they will be the same from one year to the next.
Federal: 2solar Investment Tax Credit (ITC)
Congress has already made it clear that the ITC will continue for both residential and commercial solar energy for the next five years. Currently, the ITC offers 1.9 cents per kilowatt-hour for solar energy systems installed between 2007 and 2016.
Here is a super informative post that goes into more detail.State: payments for net metering and interconnection
If you want to maximize your solar potential, you will want to understand the latest solar incentives available in 2022. There will likely be new incentive programs coming online. However, the specific programs may change and be adjusted. As a result, it is important to stay up to date to make sure you are taking advantage of the latest solar programs available.
Utility programs: net energy metering and time-of-use rates
At this time, there are no proposed solar incentive programs for 2022. In California, the California Solar Initiative (CSI) is a program that offers rebates to people who install solar power systems. This program will continue to run, but the rebates will decrease each year. As of now, the current incentive for solar systems is $0.015 per kilowatt of installed solar energy capacity.
Economic growth: net metering
If your state is one of the states that has yet to enact net metering policies, you’ll need to be watchful in the coming years. The energy policies of 2020 will set the stage for the future of your state’s energy future. For example, if your state passes a RES plan that includes mandatory net metering, you’ll be eligible for significant rebates and other financial incentives.
Carbon emissions: net metering
California has taken major steps to fight climate change by implementing the first mandatory carbon-free energy program in the U.S. California’s goal is to reduce electricity consumption by 50 percent by 2030, and has been offering solar rebates for homeowners and businesses since 2007. The federal government has also been trying to help homeowners and businesses harness the power of the sun with programs like the Solar Investment Tax Credit.
Change in tax law: ITC permanency
The federal Solar Investment Tax Credit (ITC) is a tax break for commercial solar energy projects. It was created by the federal government to help stimulate the solar energy market and increase the number of homeowners and businesses that use solar energy. If you finance your solar system through the solar ITC, you can receive a tax credit for 30 percent of the money you spend on the solar system. The ITC is available to solar energy systems that have gone through the interconnection process and are operating.
Independent solar installers support solar incentives
Congress has authorized solar incentive programs for the next five years. The Solar Energy Investment & Financing Act of 2019 extended the authorization of the solar tax credit and the solar energy production and investment tax credits (PTC and ITC) through December 31, 2022.
Conclusion
Over the past few years, we’ve seen solar energy incentives change quite a bit. In 2010, Congress passed the Solar Investment Tax Credit (ITC), which allows homeowners and businesses to deduct the costs of solar energy systems from their taxable income. The ITC was first set to expire at the end of 2020, but Congress extended it for another five years.
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