The solar ITC has been one of the biggest reasons why the solar industry has grown significantly over the last 10 to 15 years. With a 30% tax credit available for those installing solar panels, it was an easy decision for so many businesses to make. Unfortunately, all good things must come to an end—the solar investment tax credit expiration date is approaching, and the sizable benefits you used to be able to receive, are dropping every year for the next few years. The number has already dropped to 26% in 2020; it drops a further 4% to 22% in 2021; and in 2022 commercial and utility facilities only receive a 10% benefit, with residential spaces ceasing to receive any benefit at all for any solar installation project.
While bills from both the House and Senate have been introduced to push back the expiration date, it’s not quite enough for potential solar investors to hang their hats on. That’s why it’s so important to make the right decision for your facility right now—the longer you put off your solar installation, the more likely you are to miss out on all the benefits that would otherwise put you in a much healthier financial position.