Federal Solar Incentives Extended Through 2021



ASTI Newsletter | Q1 2016 Edition



If you follow solar industry news you’ve heard by now that the federal tax incentives for solar installations, previously set to expire at the end of 2016, have been extended near current for an additional 5 years. This was a huge victory and has signaled long term stability for the solar industry.


The federal investment tax credit (ITC) provides for a 30% tax credit on the cost to install solar for both residential and commercial property and has been a driving force in the industry over the last several years. Even for municipal agencies and local governments who are tax exempt, this is still an important policy if you’re looking to go solar. This is due to the proliferation of power purchase agreements (PPAs) and other arrangements where a third party entity with tax liability acts as the owner of the system, taking advantage of the tax incentives, and bills the host agency monthly for use of the system. The continuation of the ITC will mean competitive pricing in these arrangements for years to come.


Additional benefits of this ITC extension can be found on this fact sheet.




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