700+ solar companies ask Congress for long-term ITC extension, standalone storage credit and direct pay option
Nearly 750 companies across the US solar supply chain sent a letter to Congress today push for action on policies that encourage clean energy adoption and help us tackle the climate crisis.
The letter is part of a national campaign led by SEIA to support transformative solar and clean energy policies in upcoming federal infrastructure legislation. The solar industry is calling for a long-term extension of the solar investment tax credit (ITC), along with an instant payment provision, which will alleviate project financing challenges and protect the industry from pandemic-related disruptions.
The ITC is the primary policy driver behind the US solar industry. The solar industry is now a $25 billion industry that employs more than 231,000 Americans in high-quality, high-paying jobs in all 50 states. To meet President Biden’s 2035 clean energy target, the solar workforce must quadruple to more than 900,000 Americans.
“The science is clear: we need to decarbonise the power grid quickly to mitigate the worst impacts of climate change, and the solar investment tax credit is the most effective policy we have in place to boost solar deployment in the United States. said SEIA President and CEO Abigail Ross Hopper. “The ITC is also a proven job creator, and after years of policy whiplash, it’s time we gave clean energy companies the policy certainty they need to clean up our grid and create the millions of jobs needed to build a just clean energy economy. ”
The letter also calls for the addition of standalone energy storage to the ITC and significant investment to boost U.S. solar production capacity. In addition, the 748 solar companies are urging Congress to address grid resilience and prioritize policies to build and train a diverse solar workforce.
Addressing this important policy in infrastructure law will provide stability and a long runway to build a robust clean energy economy in the United States.
“Reliable and resilient U.S. energy infrastructure must provide consumers, regardless of income level, tax status and geography, with instant access to solar energy and battery storage,” said Suzanne Leta, chief policy officer at SunPower. “Federal Congressional policy leadership through a long-term extension of the investment tax credit — with equal treatment for individuals and businesses — is vital to ensuring that all customers can afford the renewable energy transition and reap the utility bill savings and resilience benefits. “
“We know this: The broken, outdated clean energy financing system is holding us back from completely decarbonising the U.S. electrical grid,” said Dr. Tom Buttgenbach, founder and CEO of 8minute Solar Energy. “We also know that climate disasters will worsen and cause more damage to our society and economy. That’s why we strongly encourage the government to expand the ITC with 100% direct pay, which will free up capital for clean energy, and help the solar industry create millions of jobs and combat climate change.”
The policy priorities outlined in the letter include:
- Extend and strengthen the most impactful national policy to boost the deployment of solar energy, the Solar Investment Tax Credit (ITC), at the rate of 30%. To achieve our collective economic goals, long-term certainty is needed to enable companies to plan a much larger clean energy build-up than is possible with current policies.
- Address funding challenges and shortfalls by adding direct reward provisions to the ITC and help the industry achieve ambitious implementation goals.
- Add standalone energy storage to the ITC to help the US meet our energy needs and increase the resilience of our electricity supply.
- Endured solid investments in clean energy that will increase solar demand while providing long-term security for companies looking to invest in U.S. manufacturing, including additional incentives for solar equipment and components built here in the U.S.
- Address grid resilience and necessary upgrades to accommodate all new renewable energy coming online, including transmission and interconnection.
- Support training programs and fair policies that continue to build a strong, diverse solar workforce.
News item from SEIA