ITC extension will assist solar growth, says US Energy Secretary

Share

The solar industry in the U.S. can grow and survive without the need for subsidy support, U.S. Energy Secretary Ernest Moniz has said, but as a tool for addressing climate change an extension of the ITC will prove valuable, he added.

With the price of solar having fallen dramatically over the past few years, Moniz believes that the cost of electricity from rooftop solar arrays could fall to $0.06/kWh in some U.S. states very soon – a situation that would make solar "extremely competitive" with fossil fuel-based power generation sources.

Democrats in Congress are pulling hard for an extension of the Federal Investment Tax Credit (ITC), which currently stands at 30% until January 1, 2017.

However, despite the Obama administration fully backing the goal of extending that 30% ITC further, Moniz is nevertheless sanguine about solar’s ability to survive free from subsidies.

"I certainly see solar growing, even without subsidy," Moniz said. "The cost reductions have been incredible for the solar industry, making for an improved value proposition in many contexts."

Moniz's remarks followed earlier comments he made explaining that the playing field for renewables is still not level, and that the ITC is important in accelerating the deployment of clean energy. "We are now at the stage where certainly if the services are being valued fully, including things like being close to peak hours, let’s say, with solar, the value proposition is largely there in many, many contexts," he said. "So without subsidy, I would still see solar growing, but clearly we don’t have a lot of time."

The Obama administration is in favor of supporting the extension of the ITC indefinitely, but a Republican-controlled Congress is likely to throw up roadblocks to stop that from happening. The issue, however, is not as simple as Democrats being in favor of renewables and Republicans in opposition – the growth of the wind industry has been rooted in many red states, prompting support for further subsidy support among Republicans in Congress.

pv magazine has explored this issue in dept in the September edition of the magazine. You can read more here.

This article was amended on September 4 to more accurately reflect the Energy Secretary's comments that despite solar's ability to survive subsidy-free, an extension of the ITC would prove beneficial.

Popular content

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.

Share

Related content

Elsewhere on pv magazine...

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.