Congress Archives - Solar Love!

The city of Bakersfield, CA has passed a resolution urging Congress to extend the federal Investment Tax Credit (ITC) for solar energy. Apparently, Bakersfield is the first and only city in America to officially pass such a resolution supporting the solar tax credit.

“The federal solar investment tax credit is critical for supporting local jobs and reducing energy bills for Bakersfield homeowners and businesses. I am pleased that the Bakersfield City Council passed by 5 to 1 this resolution urging Congress to extend this credit to keep our local solar economy growing,” said Council member Willie Rivera, a sponsor of the city’s resolution.

Key reasons given in passing such a momentous resolution for supporting solar power by the city are the facts that it contributes billions to the California economy and has employed about 54,000 people there. Bakersfield alone has about 10,000 residences and businesses using solar power.

The 30% tax credit for solar systems on residential properties will end in December of 2016, if Congress does not extend it. For commercial properties it will by reduced from 30% to 10%.

“Without the ITC, research shows the jobs of more than 100,000 Americans – nearly 34,000 in California alone – are at risk. More cities should follow Bakersfield’s lead, sending a message to Congress that the American public deserves energy independence and the well-paying jobs that solar produces,” explained SEIA President and CEO Rhone Resch.

Eliminating this important tax credit, or reducing it by 20%, is unfair, because oil and gas do receive subsidies, and solar power is an emerging industry that is doing very well. Removing support for it makes no rational sense – it is an idea that is entirely political.

The solar tax credit should be renewed – it’s a “slam dunk,” “no-brainer” kind of decision. Solar power is growing around the world, and the US is actually far behind global leaders like Germany. The US is also gradually emerging from the worst recession since the Depression, and making federal policy changes that reduce the number of good jobs would damage an economy that is still struggling.

Image Credit: Nick Chapman, Wiki Commons

In a recent interview, Vivint Solar CEO Greg Butterfield said he is optimistic about how the new Congress will be in relation to solar power.

His perspective is admirable, because optimism tends to help CEOs be effective leaders. This mental framework is not about expecting positive outcomes only, it is more of a belief in the potential to overcome difficulties and to experience success.

The general view is that Democrats favor solar power and most Republicans do not… well, on the Congressional level, that has very much been true. Therefore, renewable energy supporters may have been very upset about the mid-term elections.

Let’s look at some of Butterfield’s answers in the interview: “I think the federal government steps in whenever something must be done to benefit the broader public. For example, it has offered subsidies for oil and gas since just about forever. It also provides the ITC tax credit for solar, which has been instrumental for us to build a renewable, lower-cost energy service. There is a step-down in the credit anticipated for 2016, but we believe we’ll still be successful after that happens.”

Congress

City Of Bakersfield Urges Congress To Extend Solar Tax Credit

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