Solar tax credits end as electric rates rise

(WHTM) — Federal tax credits for home solar power systems stop at the end of this year.

A similar credit for electric vehicles ends this month, leading to a pickup in sales. Those in the solar industry said they see similar signs in increased demand.

But it still presents the industry with its biggest challenge yet. Essentially, the U.S. government currently pays 30% of the cost of a home system.

It’s a hot topic as solar leaders from Pennsylvania and across the country meet at a conference in Las Vegas. However, they said they aren’t hopeful they can convince Republicans in the White House and Congress to change their minds.

Some said soaring electric rates might, though.

“You don’t have to be a political scientist to know that when people’s electric bills go up, they get very unhappy,” said Abigail Ross Hopper, president and CEO of Solar Energy Industries Association. “And I think that the market will speak there, too. That market impact will create political pressure that politicians will have to deal with.”

Republicans who wanted to end the credits argued that government money subsidizing renewable energy could be better used for other purposes.

This year, Pennsylvania reached two gigawatts of installed solar generation across the state, the Pennsylvania Public Utility Commission said. That’s enough to power the combined households of Pittsburgh, Allentown, Erie, Scranton, York and Williamsport, it said.


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