Federal Government and State Take Steps to Promote Solar Power

Federal and state initiatives proposed at the end of 2015 could help California achieve its clean energy goals in the coming year. The incentives offered by Congress and the state legislature are key components in helping California maintain its position as a leader in solar power use.

At the federal level, Congress voted to extend tax credits for both solar and wind power for 4-6 years. Solar Investment Tax Credits (ITC) have been instrumental in developing clean energy alternatives according to recent studies. An analysis by the Solar Energy Industries Association and Bloomberg New Energy Finance estimated that more than 69 gigawatts of new solar power will be installed across the country between 2016 and 2020 as a result of offering ITC beyond 2016. This projection amounts to a solar power increase of more than 30% over current levels. The tax credit extension also has significant effects on both the solar energy employment industry and companies that have invested in innovative solar energy solutions. Without this tax credit extension, the solar energy industry predicts it could lose 80,000 jobs in 2017.

Similar state-sponsored incentives in California aim to increase the use of solar energy across the state. In December, the Governor’s appointees to the California Public Utilities Commission (CPUC) set forth a proposal to extend the solar net energy metering program in California. Under the metering system, a full credit is issued to participants for the surplus electricity that they don’t utilize. State utilities, including Southern California Edison, proposed a plan to cancel the metering program, which would require California residents to bear the cost of installing solar energy. Hundreds of thousands of residents signed petitions supporting the continuation of the net energy metering program. A decision on the future of solar energy metering is expected to be reached in January, 2016.

Contact Shane Coons at 949-333-0900 or visit his website at www.ShaneCoonsLaw.com to find out more about his practice.

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Federal Government and State Take Steps to Promote Solar Power

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