The National Renewable Energy Laboratory (NREL) has issued a new analysis exploring the potential impact of recently extended federal tax credits concerning the deployment of renewable generation technologies and related CO2 emissions from the US electric sector.
The report, Impacts of Federal Tax Credit Extensions on Renewable Deployment and Power Sector Emissions, details the use of state-of-the-art scenario modeling to explore these two questions:
- How might renewable energy deployment in the contiguous United States change with these recent federal tax credit extensions?
- How might this change in renewable energy deployment impact CO2 emissions in the power sector?
Federal tax credits for renewable energy, particularly the wind production tax credit (PTC) and the solar investment tax credit (ITC), have provided financial incentives for renewable energy deployment over the last two decades. In December 2015, the wind and solar tax credits were extended another five years from their initial scheduled expiration dates.