Good news for the clean energy industry, as U.S. lawmakers agreed to extend tax credits for solar and wind for another five years. This will give much needed boost to the industry and change the course of how the US deploys energy.
The extension adds an extra 20 gigawatts of solar power— this is more than every panel ever installed in the U.S. prior to 2015, according to Bloomberg New Energy Finance (BNEF). This deal is huge it is likely to change the landscape of US renewable energy for the future.
The wind credit will contribute another 19 gigawatts over five years. Combined, the extensions will spur more than $73 billion of investment and supply enough electricity to power 8 million U.S. homes, according to BNEF.
“This is massive,” said Ethan Zindler, head of U.S. policy analysis at BNEF. In the short term, the deal will speed up the shift from fossil fuels more than the global climate deal struck this month in Paris and more than Barack Obama’s Clean Power Plan that regulates coal plants, Zindler said.
This is solid boost for the solar and wind industries, the cost of installing has dropped more than 90% since the original tax credits were put in place. Now the industry has 5 consecutive years to hopefully make both solar and wind the cheapest energy in most US states, surpassing natural gas and coal. This is a very positive step in the right direction, it will give us a clear indication of how the markets will react, maybe this is the push we need to make renewables the number one energy source for the US. A good way to start 2016!