Page 26 - IEC Insights May-Jun20

FEATURE PROTECTING LIVES

SOLAR TAX CREDITS, EVERYDAY

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In 2020, the federal solar
investment tax credit (ITC)
stepped down from 30% to
I 26% of project cost. It will solar for almost no money down and get of the National Renewable Energy Lab
step down again in 2021 to 22%, and competitive discounted loan rates that in Golden, Colorado and a testing facility
will disappear altogether in 2022 for pay back over the course of up to 25 in San Carlos, California is in the final
residential projects. It will still be in effect years. CPACE financing works by securing stages of developing the next generation
as a 10% tax credit for commercial solar the financing against the property so of solar technology. Using patented
energy systems. Why does this matter? that you pay back the loan as part of a perovskite solar cells as an alternative to
For many in the solar industry who have special assessment on property taxes. In silicon-based cells, Swift Solar’s panels
relied on federal subsidization to drive addition, if the solar installation is located promise to be lighter and more durable
investment over the past few years, the in an Enterprise Zone in Colorado, which than those currently available. Swift Solar
step down is viewed as a stimulus in the are legislature designated economically researchers believe that the properties
short term, but as a major blow to solar distressed areas targeted for growth of these perovskite panels will decrease
energy over the long term. and development, an additional 3% state the price of manufacturing and drastically
tax credit can be applied to the total reduce the balance of system (BoS) costs
Industry leaders believe the increasing cost of a solar installation. Utilities, as of solar. BoS is currently the most expensive
cost of installing a project that looms well as state government, also have new portion of the cost to install solar and
ahead will create a “salmon run” of rebate incentives. Xcel Solar Rewards in encompasses the cost of racking systems
customers and businesses who wish to the greater Denver area offers monthly and installation. For roofers, this means that
undertake a solar project in the next two payments in exchange for Renewable solar installations could become much less
years while they can still take advantage Energy Credits produced by systems that intrusive, and instead of being fastened
of the ITC. However, many are fearful that can total up to $10/month savings for to rafters by lags drilled through shingles,
a full eradication of the residential solar home installations. Holy Cross Energy panels could be fastened atop roofing
tax credit in 2022 will have a catastrophic has a per-kilowatt (kW) rebate for its systems. With new economic pressures
effect. Luckily two forces are working to customers to reduce the cost of going on the industry, change could come fast
counteract the effects of the federal tax solar. The incentive is $4,500 for a 6kW to the look and cost of going solar.
credit step down: state incentives and next system and it can be even greater for
generation solar technology. larger systems. EnergySmart Colorado Disclaimer: The information contained
also offers rebates of anywhere from in this article is for general educational
While federal legislators have proposed $400 to $3,000 depending on where information only. This information does
a Green New Deal that has not gotten you live, that are available for solar not constitute legal advice, is not intended
enough traction to be signed into law, installations in Eagle Valley, Roaring to constitute legal advice, nor should it be
Colorado has enacted state incentives Fork Valley, and Summit County. relied upon as legal advice for your specific
for going solar that aim to close the factual pattern or situation. Regulations
gap from the federal step down. With While the stepdown of the federal tax credit and laws may vary depending on your
location. Consult with a licensed attorney
continued access to CPACE financing, threatens to make solar more expensive, in your area if you wish to obtain legal
commercial building owners can go a company called Swift Solar based out advice and/or counsel for a legal issue.

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24 Insights Magazine | May/June 2020 | www.ieci.org