What does the confirmation of new EPA head, Scott Pruitt, mean for the solar industry?
Pruitt, considered a long-time ally of the fossil fuel industry, has promised to quickly withdraw the Clean Power Plan rule developed by the Obama administration in 2014.
The CPP sought to reduce carbon emissions from the electricity sector by 32 percent from 2005 levels by 2030, and would have accelerated investment in renewables in multiple ways, including the Clean Energy Incentive Program and the option to price carbon emissions from the power sector.
With the Clean Power Plan likely withdrawn this week and the prospects of a carbon tax or cap-and-trade unlikely, federal policy to accelerate renewables will lessen considerably.
So is there any cause for panic in solar? I’d argue that there's not. And here are three reasons why.
First, during the 2015 budget resolutions, the federal Investment Tax Credit, which provides an immediate tax credit to owners of solar, wind or other renewable generation systems equal to 30 percent of the system value, was fully funded and incorporated in the GOP-led and bipartisan-approved budget through 2022. (Please read this if you’re asking yourself the very logical question, “What if Congress gets rid of the ITC?”)
Read more at greentechmedia.com
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