What Will Happen When Solar Subsidies Plummet?

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December 08, 2015

The investment tax credit for solar energy is set to fall to 10 percent from 30 percent in 2017, and some of the industry’s leading companies are asking for the tax credit to not be extended, Fox Business reports.

That is because the lower the tax credit goes, the more sense it makes for homeowners to buy solar systems, use financing from a bank, and feel the benefits of available state or local tax benefits themselves.

Before, it was hard for homeowners and other residential customers to use these tax advantages, which means the sector was dominated by investors.

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