Nicki Zvik discusses how the ITC ending plays a role in increased solar sales.
LOS ANGELES, Aug. 8, 2019 /PRNewswire-PRWeb/ -- The demand for solar is continues to climb, and the solar industry is growing exponentially to meet the demand. This has been a steady and predictable trend. Unexpected, however, is the recent, dramatic spike in demand for solar energy.
What has caused this?
One underlying factor is that solar energy is more affordable than ever due to the cost of solar dropping approximately 90 percent over the past few decades. Consumers are now finding the solar energy alternative more attractive than ever. Advances in solar technology have also played a large role in its increased demand. And perhaps the largest motive for solar's demand is the solar investment tax credit (or ITC for short).
Nicki Zvik, Founder of Green Solar Technologies, explains, "The ITC has been an integral factor in the growth of the solar industry over the past few years. It's made solar enticing and more beneficial to customers from a financial standpoint."
The ITC, is currently set at 30 percent meaning that those who install solar buy the end of the year can receive 30 percent back for what they paid for their system come next tax season.
"The 30 percent tax credit has been a huge incentive for customers to make the switch to solar," states Zvik, "but unfortunately come 2020, that number is set to drop and will continue dropping until reaching a mere 10 percent. And while a 10 percent credit can still amount to large savings depending on the size of the system installed, saving 30 percent is clearly more attractive, which is why we've seen such a spike in solar sales lately. People want to take advantage of that 30 percent while they still can."
While the recent spike in sales is good for the solar industry short-term, it could mean that sales will slow down within the next year.
Zvik continues, "It's inevitable that the solar industry will continue to grow no matter what, but the fear that so many leaders in the solar industry have is that we'll begin to see a much slower growth. We may start losing potential customers who may have wanted to go solar but feel that installing a system won't be as financially advantageous as it was when the ITC was in full force."
Nicki Zvik goes on to mention that unless the ITC is extended, it could reign trouble for the proposed Green New Deal as well as other efforts being made to lead us to a greener future.
"We can't forget the most important reason why it is imperative the solar industry continues to flourish; to help provide us a cleaner and healthier environment," shares Zvik. "We need people to continue to see the benefits of solar in order to get us to a net zero carbon country for the sake of our Earth and future generations. We could be facing a pretty big hurdle in this dream with the 30 percent tax credit potentially ending, but while the situation isn't ideal, I have confidence that we'll be able to look back on this as a bump in the road and we can continue down a path to a country that runs on beautiful, clean, solar energy."