Future of solar energy in the U.S
Dear worldTalk: What’s planning to happen to the U.S. solar power business once the federal solar investment income tax credit expires the following year? - Victoria Chase, Washington, DC
In the U.S., a new solar power project was set up every three full minutes in 2014, and jobs within the solar power industry rose from 15, 000 employees in 2005 to almost 174, 000 today. This considerable development is within large component due to the Energy Policy Act of 2005’s 30 percent financial investment taxation Credit (ITC) for commercial and residential solar power methods. In 2007, after just one 12 months of execution, the ITC resulted in the doubling of downloaded solar electric ability. In 2008, Congress passed an eight-year expansion associated with the ITC, enabling solar to be the fastest growing power source into the U.S. Solar has also become way more affordable: The average installed expense per watt features dropped from around $7.50 last year to $2.89 in 2013.
After December 2016, the ITC solar credit will drop from 30 percent to 10 % and domestic credit will drop to zero—unless Congress runs this due date. Big companies are making considerable solar opportunities ahead of the solar taxation credit deadline shows up. In February 2015, Apple revealed so it would spend $848 million over 25 years to get 130 megawatts of electricity from First Solar’s California Flats Solar venture in Monterey County. The project, that may entertain 2, 900 acres of land in Cholame, California, is the solar industry’s largest-ever corporate power purchase contract.
“Apple’s commitment ended up being instrumental to make this project possible and will dramatically increase the availability of solar power in Ca, ” said Joe Kishkill, very first Solar’s primary commercial officer. “Over time, the green power from Ca Flats will provide financial savings over alternative resources of power plus substantially lower ecological influence.”