Planet Forward Infographic: A Big Deal for Solar in the District

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Planet Forward creates an infographic explaining the environmental impact of GW's participation in the Capital Partners Solar Project.

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Planet Forward Infographic: A Big Deal for Solar in the District

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Federal tax policies have been an important driver for solar’s recent remarkable growth, but without action during the 114th Congress, the 30-percent investment tax credit (ITC) for solar and other clean energy technologies will expire at the end of 2016. If Congress were to allow this policy shock to occur, the economics of solar investments would worsen, reducing solar deployments in 2017 and beyond. Solar jobs would be lost, and solar cost reductions would be delayed. While these negative impacts of current law are undeniable, their magnitude remains an open question. This policy brief estimates the impacts that current law would have on the solar industry. It also formulates several policy alternatives and estimates their effectiveness at mitigating the negative impacts of the investment tax credit cliff embedded within current law.

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This research poster was created as a part of the 2014 Solar Symposium and is by The Solar Foundation. The National Solar Jobs Census series is a product of The Solar Foundation®, conducted annually since 2010. The inaugural Census established the first credible employment baseline for the domestic solar industry.The Census surveys solar employers and quantifies jobs across all solar technologies and industry subsectors. Since 2010, employment has grown by 53%, representing nearly 50,000 new U.S. solar jobs.

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This research poster was created as a part of the 2014 Solar Symposium and is by James Mueller and Amit Ronen. Fitting Clean Energy into a Reformed Tax Code” Given the looming expiration of clean energy tax incentives and the likelihood of comprehensive tax reform, the clean energy sector need to be developing pragmatic and politically attuned alternatives that fit within the context of tax reform principles. The GW Solar Institute is launching a research series, Fitting Clean Energy into a Reformed Tax Code, which seeks to develop innovative policy solutions and inform policymakers on the full range of impacts that these potential options could have.

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This policy brief investigates the impact that recent Congressional tax reform proposals would have on the solar industry. As the first policy brief in an ongoing series, it outlines both the challenges and the opportunities for the solar industry within tax reform. The GW Solar Institute's analysis finds that all recent tax reform proposals would increase the cost of solar energy substantially compared to current policy. Even the Baucus tax reform proposal, which includes a 20 percent Investment Tax Credit (ITC) for solar, would increase costs by 34 percent over current policy due to its drastic changes to current depreciation schedules and the minimal impact from a lower corporate rate. No matter which other broader changes to the tax system Congress adopts in tax reform, additional energy sector policies would still be necessary to maintain solar’s economic competitiveness relative to current law.

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