1603 Investment Tax Credit (ITC) Grant-In-Lieu Might Be Extended For 24 Months Offering Significant Upside To Solar Farm Investment

Throughout the United States in 2011, solar farm project demand might be forecasted to reach 1750MW influenced by the utility scale installs. Because of a fifteen percent yoy decrease in solar panel cost per watt, unsubsidized system installation expenditures will likely move to five to six dollars per watt with regard to non-commercial scale together with $3.75-$4 for utility level, which ought to help pump the US sector demand up 119% year in and year out in 2011 versus 800mw in the year 2010. Based primarily on recent progress with regard to energy policy legislation, Commercial Solar Design points to significantly greater chances associated with an extension of treasury hard cash grant-in-lieu of thirty percent investment tax credit (ITC), which may well contribute tremendously to the upside regarding Commercial Solar Design's forecast and enhance solar farm investment considerably.

Non-residential installs will achieve an increased share of the USA solar farm marketplace with seventy six percent of the marketplace in 2011, up from sixty nine percent in 2010 (136% year in and year out). In terms of the regulatory landscape, although the major comprehensive energy reform bill seems to be removed from the table, a "domestic manufacturing and energy jobs" bill presented in the House of Representatives in the later part of July did include an extension for the hard cash grant-in-lieu for 30 % investment tax credit (ITC) . Commercial Solar Design is definitely advising that there exists a much higher likelihood of passage of the bill in the legislature after the United States Congress assembles following the August recess. This specific bill is subsequently likely to be combined together with the unfinished energy bill in the the US House of Representatives or may very well be attached to the tax extender's bill later on in 2010. As a whole, passage of renewable energy tax credit is certainly high on the agenda of tax committees in the United States Congress.

The discussion draft connected with "Domestic Manufacturing and Energy Jobs Act of 2010" circulated within the last week of July confirms the fact that the extension for the cash grant program for 24 months is the paramount solar energy question within the bill. The draft excludes the very much hoped for climate change bill including "cap and trade" as well as a nationwide Renewable Portfolio Standard (RPS). This kind of watered down package of the "energy" bill is expected to be approved in the House of Representatives when United States Congress resumes following the August break the week of September thirteenth. Even so solar farm investment can certainly proceed together with favorable IRR (internal rate of return) with or without the need of a 1603 extension

The Treasury hard cash grant-in-lieu of the thirty percent investment tax credit (ITC) program was launched in August 2009 to offer an upfront hard cash grant equivalent to 30% of the applicable installation price tag to the solar energy building contractors plus developers and including commercial and utility scale projects. A substantial majority of the contractors and developers didn't have taxable profits to make use of the thirty percent ITC (investment tax credit), therefore, the real money grant program became a major incentive for the photovoltaic contractors/developers. For the reason that there seemed to be a lack of understanding surrounding the taxability of the real money grant through late April the incentive was basically underutilized.

The Treasury hard cash grant program became a considerable success and extension of the program can provide important benefit to solar farm investment and demand approximations in 2011.

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