A two-year extension of the investment tax credit (ITC) for solar systems as well as new funding for energy storage research has been included in the US’ wide-reaching pandemic relief package that was approved by Congress on Monday evening.
Under the legislation, the solar ITC will remain at 26% for projects that begin construction in 2021 and 2022, step down to 22% in 2023 and then drop to 10% in 2024 for commercial projects, when the residential credit ends completely. Having fallen from the
previous 30% rate in January, the credit was originally set to drop to 22% next year.
The US$900 billion COVID package also includes funding for distributed energy deployment as well as support to provide better access to federal lands for renewable projects. The 5,593-page legislation – which is said to be the longest bill ever passed by Congress – is soon expected to be signed into law by President Trump. . . .
As well as boosts for solar and storage, the emergency relief measures also include a 30% investment tax credit for offshore wind projects that start construction by 2025 and a one-year extension of the production tax credit for wind power.