Solar panel installs surge as tax credit set to phase-out
Homeowners in USA considering solar energy might want to make a decision before the end of the year in order to get their full 30 percent tax credit, which is set to phase out. The Solar Investment Tax Credit, or ITC, is available for solar panel systems on both residential and commercial properties. After this year, the tax credit drops to 26 percent for projects that begin construction in 2020 and 22 percent for projects that begin in 2021. After 2021, the residential credit will drop to zero.
Annual solar installation has grown by over 1,600 percent since ITC was enacted in 2006. This is a compound annual growth rate of about 76 percent, according to the Solar Energy Industries Association, or SEIA.
Experts link the generous tax credit with an uptick in solar energy interest and implementation. And some states, like California, are going a step further with rules that require solar systems for new construction.