As much as we would like to hope that the federal government would continue to offer tax incentives for the next 5 billion more years (the life expectancy of the sun) sadly at the end of 2016 the current tax incentives will be going away.
Initially The Energy Policy Act of 2005 established a 30 percent investment tax credit for commercial and residential solar energy systems. This incentive was set to last from January 1st 2006 through end of 2007. Half way through its duration, another year extension was added which helped achieve a global investment of $100 billion dollars in clean energy in 2007 with solar taking the lead.
This was then further amplified by The Emergency Economic Stabilization Act of 2008 which extended the incentive by another 8 years! This brings us to December 31st of next year (2016) when the incentive goes down to 10% for commercial use and is removed completely for residential.
With the solar energy industry growing by leaps and bounds (76% growth over Q1 2014 alone) a lot of people are unsure if incentives will be extended yet again. This is why we encourage everyone to take advantage of these incentives before they go away and remember, they only apply if you purchase rather than lease like a lot of our competitors.
Do you think that the incentives will be extended or will the federal government leave it to the market to drive this growth?