What is the GREEN Act?
On June 25, 2020, the House Ways and Means Committee introduced the Growing Renewable Energy and Efficiency Now (GREEN) Act, which aims to garner greater support for renewable energy sources including solar and wind power.
This is exciting news within the solar industry as the GREEN Act specifically proposes to provide incentives to individuals to make renewable energy investments and make energy efficiency improvements to their homes. For homeowners who are choosing to go solar, this could mean large savings in their future investment. The Act would enhance solar energy tax credits available to customers wanting to add solar panels to their home.
The Act has potential to be part of the larger $1.5 trillion House infrastructure package, and if approved, could be a comprehensive approach to tackling climate change using the tax code, states Chris Galford of Daily Energy Insider.
What this means for an impact on climate change
Renewable energy is an important factor in furthering efforts to tackle the larger issue of climate change. Says Chairman of the House Ways and Means Committee Mike Thompson (CA-05) about the Act, “the threat of climate change is the most pressing issue of our time. Today we take a major step forward in enacting comprehensive climate policy as we introduce the GREEN Act. This bill uses our tax code to expand the deployment of renewable energy by extending and expanding the federal tax incentives to promote clean energy technologies and supports widespread deployment of zero-emissions vehicles. All this is an investment in creating new efficiency and emissions models to reduce our carbon footprint. And it’s a down payment on our work to tackle climate change and pass on a better world to our children and grandchildren.”
This is why there has been so much support for the Act moving forward, including nearly 650 companies who sent a letter urging Congress to include solar in their recovery legislation. There is wide support for this Act including concern for the climate as well as what this would mean for the solar energy tax credit in the future.
The Research on Renewable Energy: Most Americans Agree
In recent polls on the topic of alternative energy, it was shown that regardless of political affiliation, the majority of Americans support expanding alternative energy sources, and in particular, the solar industry.
In a recent poll by Pew Research Center, most Americans say that developing alternative sources should be the nation’s energy priority.
A further breakdown of this data shows that large shares [of Americans] say they would favor developing more solar panel farms (90%) and wind turbine farms (83%) as opposed to oil and gas companies.
In another recent poll conducted by the Yale Program on Climate Change Communication with Climate Nexus and the George Mason University Center for Climate Change Communication, they looked at a sample of Americans’ opinions of bailouts for companies amidst the coronavirus pandemic.
It was reported that across the board of voters, two-thirds (67%) support providing financial assistance to renewable energy companies. By contrast, fewer than half support bailing out oil and gas companies (49%) or coal companies (44%).
Source: Yale Program on Climate Change Communication
“We’re heartened that members of Congress are stepping up to fight for American jobs by growing solar energy at this critical moment,” said Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA). “These leaders recognize that we can achieve our economic goals while also tackling longstanding issues in our country such as climate change and the inherent inequalities of our energy economy. It’s time for us to translate these good intentions into action.”
What does this mean for homeowners considering solar?
Solar additions to your home will continue to be an investment for years to come, regardless of if the Act is passed. However, the Act includes direct pay and outlines a 5-year extension of the solar Investment Tax Credit (ITC) at 30% through 2025, followed by a two-year stepdown period. The stepdown would begin in 2026 at 26%, move to 22% in 2027 and then drop to 10% for commercial and utility-scale solar projects and 0% for residential solar in 2028. This means a longer window for solar energy tax credits back to you!
In addition to savings, both [the direct pay option and solar Investment Tax Credit (ITC) “would help the economy recover from COVID-19,” reports the SEIA.
Helping the economy recover from the pandemic and keeping the environment healthy as well as continuing to provide added financial benefits to homeowners choosing solar. With all the reasons stacking up, it’s easy to see why Sunpro Solar supports this Act moving forward.
Why Choose Sunpro Solar
At Sunpro Solar we ensure that our manufacturers produce and test their solar panels up to the highest standards, which is why we use LG. We stand by our product warranties and are sure that you will be 100% satisfied with your solar panels.
We offer easy ways for you to switch to solar so you can enjoy clean, renewable energy. Schedule your free consultation to find out more about switching or how to save with the solar tax credit.Find out how much you can save