Investment Tax Credit Extension: A Silver Lined Cloud in an Otherwise Stormy Month

One of the unexpected benefits of the $700 billion Emergency Economic Stabilization Act (2008) that was approved by the government and signed earlier last month by President Bush was the inclusion of the new 8-year, 30% investment tax credit (ITC) for utility scale, commercial and residential solar power systems.

The signing of the bill has the potential to create the largest solar energy market in the world and provides a significant boost for both manufacturers and developers which were facing a bleak future with the original ITC bill set to expire at the end of 2008.  The new bill increases the ITC benefit for residential homes from a maximum of $2,000 to 30% of the system size .  This will have a dramatic impact on the net cost of solar when added to State and local solar initiatives.