A two-year extension of the investment tax credit (ITC) for solar systems as well as new funding for energy storage research has been included in the US’ wide-reaching pandemic relief package that was approved by Congress on Monday evening.
Under the legislation, the solar ITC will remain at 26% for projects that begin construction in 2021 and 2022, step down to 22% in 2023 and then drop to 10% in 2024 for commercial projects, when the residential credit ends completely. Having fallen from the previous 30% rate in January, the credit was originally set to drop to 22% next year.
