The 2024 Presidential Election is near and businesses that have considering going solar are concerned about what the election outcome might mean for the future of renewable energy tax credits and incentives that were put into action by President Biden’s signature Inflation Reduction Act (IRA). These policies have positively influenced the rate of commercial and non-profit properties conversion to solar energy.
Will the 2024 Election Outcome Impact Commercial Solar Energy?
The short answer: We don’t know. However, as a trusted New Jersey solar energy provider, we want to share our insights based on our long standing involvement in New Jersey’s clean energy policies.
The commercial solar energy market has boomed since the signing of the IRA. Since its passing, there has been significant renewable energy progress and impact. It allowed the solar industry to exit its perceived nascent status and measurably mature into a stable marketplace, with significant infrastructure to ensure it keeps growing. Domestic production is on the rise and the solar job market has grown exponentially faster than most sectors across the nation.
The IRA has increased the financial incentives for business owners considering solar energy, by upping the Federal Solar Tax Credit to 30%, expanding the REAP Grant, and implementing incentives that encourage clean energy growth. These incentives have yielded an notable expansion in the sector by both job creation and green energy investments in both red and blue states.
Will the 2024 Election Outcome Impact Federal Solar Incentives?
When it comes to solar development, there is a more bipartisan appeal for the benefits it has produced. Our Amicus Solar Cooperative partner, GreenSpark Solar, reported that according to research from Fidelity, traditionally Republican states accounted for 58% of the projects announced under the IRA. According to S&P Global Commodity Insights, Texas, known as a red state, is the leading US renewables market and has attracted roughly $75 billion in private sector and federal funding commitments for clean energy and transportation projects.
Is It Possible the IRA is Too Big to Roll Back?
Last week, Robobank.com published an article stating that while there wasn’t bi-partisan support when the bill passed, many Republicans have since come to recognize that the clean energy jobs that were brought to their home states have positively impacted their economies. 18 House Republicans sent a letter to House Speaker Mike Johnson requesting not to repeal the IRA. It stated: “Prematurely repealing energy tax credits, particularly those which were used to justify investments that already broke ground, would undermine private investments and stop development that is already ongoing. A full repeal would create a worst-case scenario where we would have spent billions of taxpayer dollars and received next to nothing in return.”
Is It Possible the IRA Will Go Away?
With or without a looming election, there is always potential for energy policies to change. Solar energy has seen broad adoption, strong bipartisan support, and significant progress over the past two decades, making it well-positioned to thrive regardless of the election outcome.
It is important to remember that the federal provisions from the IRA only make up part of the picture. State incentives are a big part of the puzzle and New Jersey state incentives are among the strongest in the country. These solar incentives and tax credits include:
- State Renewable Energy Credits (SRECS) – . Based on production, property owners receive $110 per 1,0000 kWh of commercial solar energy
- Net Metering – Excess energy can be sold back to the grid for a credit on electric bills
- NJ Accelerated Depreciation – 8% of solar project cost can be deducted over a 6 year schedule
According to E2 Reporting, renewable generation in New Jersey grew 4.2 percent in 2022, led by increased jobs in solar energy (8,781). Nationally, New Jersey has the 11th largest renewable generation workforce in the nation with almost 12,000 employed. It is also worth noting that NJ Governor Murphy’s Energy Master Plan (EMP) to transition to a 100% clean energy economy by 2050 remains firmly in place.
What Next?
Solar energy has seen broad adoption, strong bipartisan support, and significant progress over the past two decades, making it well-positioned to thrive regardless of the election outcome. No matter who is elected as President of the United States, the current incentives for going solar will remain in place through 2025.
If your business wants 100% assurance that it can take advantage of the 30% Federal Solar Tax Credit and other federal incentives, it makes sense to get the ball rolling now so your commercial solar energy installation can be permitted and completed in time.
Regardless of the election outcome, Geoscape Solar has deep experience in solar financing. We are uniquely able to help commercial properties maximize all available solar tax credits and incentives to guarantee a fast return on investment and an increased bottom line. Contact us to discover more about how a solar energy system can save your business money.
No matter what your next steps are, DON’T FORGET TO VOTE!