Will Solar Die if the Investment Tax Credit Isn’t Renewed?

Wall Street Journal: “At the end of next year, the 30% investment tax credit for solar and other renewable power is set to expire for residential systems and plunge to 10% for commercial installations. Boosters are calling for Congress to extend the credit in its current form.” “Amit Ronen, director of the GW Solar Institute and a professor at the Trachtenberg School of Public Policy at George Washington University, argues that the end of the 30% credit will send solar off a cliff. “ “According to Energy Information Administration data, if the 30% credit is not extended, rooftop solar photovoltaic installations will plunge 94% in 2017 from a year earlier and utility-scale projects will decline 100%, with neither recovering anywhere close to today’s levels even a decade from now. Bloomberg predicts solar installations will drop by two-thirds in 2017, which the Solar Energy Industries Association estimates will cost America 100,000 jobs.” “The tax credit has been a solid investment for America, which shouldn’t be abandoned abruptly or prematurely. If our goal is to diversify and decarbonize our nation’s energy portfolio, why would we eliminate the credit before removing billions of dollars of subsidies for fossil fuels? If our goal is to provide more consumer choice and lower electricity bills, why would we want to cut off the credit just as it is starting to benefit America and its households?”
Topics: wonk-wire