By Theresa Ficazzola
You may be wondering what the new administration means for the solar industry.
Short term, there’s nothing stopping you from going solar. There’s still time to take advantage of the benefits of solar panels for your home in New York or New Jersey because the benefits are still significant.
Long term, that remains to be seen because no one knows what the new administration will do. However, the Federal Tax Credit that was part of the Inflation Reduction Act (IRA) is law. Therefore, any changes to what is outlined in the IRA would have to be repealed and approved by Congress.
The Federal Tax Credit for Solar Doesn’t Expire Until 2032
The Solar Federal Tax Credit, which was increased to 30% as part of the IRA, isn’t scheduled to expire until 2032. And even then, it’s not going away altogether. It will be reduced to 26% in 2033 and 22% in 2034. So, there’s plenty of time to take advantage of these generous government tax incentives to generate your own electricity.
And if you live in New York, in addition to the 30% Federal Tax Credit, you would also receive:
- New York State Tax Credit: All NY State homeowners receive a one-time tax credit of up to $5,000 the year their rooftop solar panels are installed. So that’s another reduction in the cost of a solar power system. Just complete Form IT-255 when filing your New York State income tax return.
- New York City Property Tax Abatement: As a NYC resident, you are also entitled to an additional 4-year property tax abatement of 30% of the cost of your solar power system up to $62,500. To receive this abatement, there is nothing you need to do. If SI Solar is your solar panel installation expert, we would file for the rebate on your behalf.
Withdrawal From the Paris Agreement Not Really a Factor
On his first day in office, President Trump signed an executive order to withdraw the US from the Paris Agreement, which is an agreement between most countries to fight climate change. Specifically, countries around the world are trying to keep global warming below a certain level to avoid a scenario where the earth is warmed beyond a certain level that can’t be reversed.
The good news is that the US withdrawal from the pact will not become official until 2026.
Plus, President Trump withdrew from the Paris Agreement during his first term in office, and it did not have any immediate impact on the solar industry. According to the Solar Energy Industries Association (SEIA), the national trade association for the solar and solar + storage industries, “Under President Trump’s first term, the solar industry grew by an astounding 128%.”
The Solar Industry is Ready to Work with the Government
In December, before President Trump even took office, the SEIA unveiled a comprehensive policy agenda for the President and the 119th Congress to ensure the US is the world’s dominant solar and storage market.
According to the SEIA, “We’re ready to work with the new administration and Congress to continue the buildout of solar and storage, including the ongoing surge in domestic manufacturing that is reducing our reliance on foreign countries and supporting American workers.”
According to the SEIA’s press release: “This policy agenda calls for strengthening the solar and storage industry as part of a broad strategy to achieve American energy independence and security. It calls for eliminating dependence on China for solar and storage components and continuing the ongoing surge of manufacturing investments that has made the US a top three solar manufacturing hub.”
SEIA’s policy agenda includes the following core goals:
- Eliminate dependence on China
- Surge American solar manufacturing
- Meet the demand challenges of data centers, AI and crypto
- Cut red tape in the energy sector
- Support energy choice and energy freedom
- Protect private property rights
- Bring more jobs to America’s heartland
According to its website, the Solar Energy Industries Association® (SEIA) is leading the transformation to a clean energy economy, creating the framework for solar to achieve 30% of US electricity generation by 2030. SEIA works with its 1,000 member companies and other strategic partners to fight for policies that create jobs in every community and shape fair market rules that promote competition and the growth of reliable, low-cost solar power.
Don’t Delay, Get Your Solar Quote Today From SI Solar
If you have been thinking about going solar, now is the time!
Call SI Solar today to see how you can:
- benefit from producing your own clean energy
- stay ahead of the high cost of your home’s energy consumption
- put more money in your pocket to spend on things you enjoy
- take advantage of the generous tax incentives, in the event any solar laws are challenged or changed in the future
