GSG Unfazed by the ITC Phasedown
The future of solar is unclear, but one thing is certain — Go Solar Group will still be here.
To stay in business, companies need to pay attention to market trends and plan accordingly. This is no easy task but Go Solar Group is confident that it is one they have mastered.
The solar investment tax credit (ITC) phasedown is sending a shock of panic throughout the solar industry. However, Go Solar Group is calm.
Go Solar Group has ridden through similar storms before and came out on top. Which is why this company feels that the past of solar provides promise for the future
Historical Trends Impact on the Solar Industry
Like any new technology, when solar first came on the market, few could afford it. However, as technology evolved the price for solar panels dropped.
What many don’t know is that another reason solar prices started to drop was the Energy Policy Act of 2005. This law allows federal taxes that customers owe to cover part of the solar array.
It dropped the price of installations and helped the solar industry to expand. This law has made solar panels available to the public which has helped solar skyrocket over the last 19 years.
The Cause of Solar Price Drops
Since the ITC was first created in 2005 solar has seen a boost in sales. Each ITC Extension has spurred added growth in the solar market. As seen from the chart below, the ITC has made the price of solar reasonable for the average citizen.
Today solar is thousands of dollars cheaper than it was at first. Although climate change has become the poster child for renewable energy, it isn’t the driving factor behind purchasing solar.
Americans value saving money. With the tax credit, solar has become a commodity that helps people save in a creative way. Solar is an investment that saves the average homeowner thousands of dollars.
Taking a Look Into the Future of Solar
Thinking about the future can be a bit scary. This is because it comes with the fear of the unknown.
However, when combined with the past of solar, the future has far more hope. There have been several road bumps along the path to get to where solar is today.
This hasn’t stopped the solar industry from finding a way around it though. There is still hope for the future of solar.
Solar Industry’s Push for ITC Extension
The solar ITC has made a significant impact on the affordability of solar. This is why the solar industry is pushing for another ITC extension.
This extension, if implemented, would extend the 30 percent tax credit for another five years. This bill, the Renewable Energy Extension Act of 2019, was first presented in the 116th United States Congress.
Whether it will pass is still up in the air. However, the fact that people are fighting for solar is promising.
Solar Permitting Price Cuts: Another Solution
The ITC is set to step down from 30 to 26 percent after 2019 and completely disappear, for residential solar, by 2022. There are, however, other ways to decrease the price of solar.
If permits were the same in every county and state, this would help drive costs down. It would be even better if everyone utilized the internet to complete, submit and review permits.
This is a ray of hope for solar after the ITC is no longer in place. However, when or if this will be implemented is in the air.
GSG Will Be Here No Matter What Happens
Regardless of what happens, Go Solar Group is here for the long haul. This was first demonstrated by how well GSG fared during the importation tax scare.
Companies that were not financially secure folded as a result of this price increase. However, Go Solar Group was among the prepared.
Amid the chaos of the solar industry panic, Go Solar Group was steadfast. This will continue to be the case as the solar industry continues to move through other hurdles.
For Go Solar Group, the tax credit step-down is just another roadblock to drive around. That being said, it doesn’t mean that people should ignore the phasedown. Those who can take advantage of solar now would be wise to do so.