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What the Pandemic Relief Package May Mean for Renewable Energy Solutions

The vaccines may be on their way, but that does not mean that the pandemic is now outside our view. Indeed, COVID-19 is still at the precipice ,and the risks that it posed before are still alive more than ever. 

Governments around the world recognize this fully-well, so they all acted, accordingly.

In the United States, President Donald Trump, as part of his final series of actions, signed into law the Consolidated Appropriations Act which, among others, extended the Solar Investment Tax Credit or the Federal Solar Tax Credit. This means that, until the year 2022, the investment tax credit will remain at 26%. After that year — barring any more extensions — the credit will be declining by 3% or 23% and will go down as low as 10% a year after that initial reduction. 

What does this mean for renewable energy?

This means that, for the next year or so, installing and using renewable energy may become so inexpensive that it may finally begin to outpace traditional sources of energy. Not only may the US reach a point where renewable energy could become the dominant energy source for the country, but it may finally give the entire country the hope of becoming a beacon for clean and sustainable energy. 

More than the emergence of additional green power plants, the tax credit also gives regular citizens the chance to transition to green energy for less financial stress. 

That’s not all. The extension of the tax credit may inspire further research and development for such alternative sources of energy. Consequently, over the next few months, we may see the creation of better renewable energy systems and solutions — more specifically for solar energy.  

At this point, it may seem fair to claim that the relief is a pandemic relief for energy solutions.

If you are interested in knowing more about solar energy and the federal investment tax credit, do not hesitate to get in touch with us. We are here to help.

Want to learn more about going solar? Call us at (714) 880-8089.