Bipartisan pandemic relief by way of a $900 billion government stimulus bill is set to roll out after Congressional leaders came to a consensus on Sunday, December 20, 2020, and the bill was passed by both the Senate and House on Monday, December 21. This bill combined with a $1.4 trillion spending package extends federal tax credits that incentivize construction of new wind and solar power plants, as well as tax credits for alternative fuels, fuel cells, carbon capture, and energy efficiency.
Renewable Energy Tax Credits Explained
With the support of leadership from both parties, in both the Senate and the House of Representatives, the bill is set to provide economic relief during the ongoing pandemic. Extending renewable energy tax credits will aid in prolonging the renewables building boom as well as allowing for more time to meet deadlines to qualify for the tax credits.
Under the new law, the existing 26 percent Investment Tax Credit (ITC) requiring construction of new solar power projects begin before the end of 2020 will be extended by two years, pushing the deadline to commence construction to the end of 2022.
What This Means for Commercial and Residential Solar
The 2020 extension to renewable energy tax credits shows invaluable promise for homeowners and businesses looking to “go green” and save money with the aid of solar energy. Generous incentives for alternative energy production aids immensely in making solar energy accessible and validates the importance of energy independence through solar production at home and work.
The extension will provide a longer window of opportunity for anyone considering installing residential or commercial solar, as well as a supplement what is sure to be an increase in home electrical consumption and soaring utility bills as many people continue to work from home.
This lengthened timeline will allow for financial recovery due to the Covid-19 pandemic and likely open the doors for individuals and businesses unable to budget for solar by the end of 2020.
There are many financing options available as well, with a relatively short return on investment periods designed to stimulate and ease the outright ownership of a home or commercial solar system. The end game is to permanently offset utility bills and own your energy production.
Are you looking to have solar panels installed on your home or business? Simmitri offers solar energy and roofing solutions with healthy financing options in the San Francisco Bay Area. Get in touch with us today to schedule an energy assessment and learn more about renewable energy tax credits!