Smart Buildings

Energy Storage Considers the Implications of Investment Tax Credits Drop in 2017

In 2006, the US government decided to encourage renewable energy market growth with financial incentives, for solar, wind, and other renewable energy products. Through their Investment Tax Credits (ITC) policy they provide a 30% tax credit to owners of investments in clean energy projects. Following the rapid development of energy storage technology, in 2013 the IRS ruled that energy storage solutions could also qualify for the credit. However, the ITC is set to come to an end on December 31st 2016, with huge implications for renewable energy, energy storage, smart building and the environment. According to Kyung-Ah Park, a Goldman Sachs managing director and head of the environmental markets group, the renewable energy sector has “reached an inflection point” with more renewable energy systems installed this year than conventional systems. However, she said we might see “a pretty steep decline in 2017” in U.S. based renewable energy investments if the tax credit doesn’t get extended. […]

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