Just in time for the Holidays, after many long months of deliberations and lobbying, the US Congress has approved a five-year extension to the Investment Tax Credit, which has buoyed the country’s solar industry for several years and to the Production Tax Credit, which has similarly been a critical support for the country’s wind energy industry. Renewable energy projects will be more attractive due to this multi-year support.
Both the Investment Tax Credit (ITC) and Production Tax Credit (PTC) were included in the omnibus appropriations bill (PDF).
On Friday, the House and Senate agreed by significant margins to grant extensions to the 30 percent ITC for solar energy and the 2.3-cent-per-kilowatt-hour PTC for wind power.
Other technologies—including geothermal, marine energy and small hydropower—received one-year extensions to their 30 percent ITC under the joint spending and tax measures passed Friday and expected to be signed by President Obama this week.
“Beyond any shadow of doubt, the US solar market has just been given the most lucrative and government backed seal of approval yet seen in the PV industry,” said Finlay Colville, head of Solar Intelligence at Solar Media, and one of the industry’s leading analysts.
“By extending the solar investment tax credit for five years with a commence construction provision and a gradual ramp down, bipartisan members in both Houses have reestablished America as the global leader in clean energy, which will boost our economy and create thousands of jobs across America,” said Rhone Resch, president and CEO of the Solar Energy Industries Association (SEIA).
Solar Stocks Skyrocket
Reportedly, solar companies have also seen their stock values increase on news of the tax credit extensions — following existing increases in the wake of the successful Paris COP21 agreement.SunEdison saw its stock skyrocket 24% in trading on Wednesday to finish above $6 for the first time since early November, representing a 54% increase in stock price since close of trade last Friday. Canadian Solar stock jumped 7%, SolarCity stock jumped an impressive 34%, andTrina Solar saw its share price climb as well, but only 4.8% — though Trina Solar had already seen its share price jump significantly on the back of company news.
Wind Stocks Jump
Several major wind energy players also saw their own stocks jump marginally on the back of the news. Vestas Wind Systems saw its stock price jump over 6% since Monday, and is well into an astonishing five-year stock price high. Spanish renewable energy companies Gamesa and EDP Renovaveis (the parent company of EDP Renewables North America) both saw their stocks tick upwards slightly as well.
“This agreement will enable wind energy to create more affordable, reliable and clean energy for America by providing multi-year predictability as we have called for,” said Tom Kiernan, CEO of the American Wind Energy Association.
If you or your business have questions regarding CHP, renewable energy projects, energy law or real estate law, contact attorney Jeffrey A. Franklin at Prince Law Offices, P.C.