The two year deadline for projects to qualify for the Renewable Energy Investment Tax Credit (ITC) by December 2016 is beginning to cast a shadow over new contracts for utility-scale PV projects in the US.
Along with US Department of Energy’s Loan Guarantee Program, the 30% ITC blazed a sudden bright comet of big solar onto the US grid.
More than half went to California to meet its ambitious mandate for 33% renewable energy by 2020. Power Purchase Agreements (PPAs) with the state’s big three Investor-Owned Utilities (IOU)s; PG&E, SCE, and SDG&E now include most of the world’s largest solar projects.
In a gigantic solar gold rush that was brought into being by the Recovery Act funding of the DOE’s Loan Guarantee Program, which backed loans with nearly $5bn in guarantees, and the ITC - making solar investment attractive, and California’s 33% demand; all three worked together and created the biggest solar boom in US history.
But with the end of the renewable loan guarantees, and the sating of California’s 33% demand; the looming end of the ITC threatens to return the US to the dark ages in two years.
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