- Solar Alliance Energy (OLR) has given an overview of proposed U.S. legislation to reduce greenhouse gas emissions by 40 per cent by 2030
- This will be achieved through a series of initiatives that will directly benefit solar consumers
- From its current Investment Tax Credit (ITC) of 26% tax credit for solar systems, the proposed legislation seeks to increase tax credit to 30% for projects completed in 2022
- The proposed legislation also plans to extend the ITC another ten years
- Solar Alliance is an energy solutions provider focused on residential, commercial and industrial solar installations
- Solar Alliance Energy Inc. opened trading at C$0.07
Solar Alliance Energy (OLR) provided an overview of proposed U.S. legislation to reduce greenhouse gas emissions by 40 per cent below 2005 levels by 2030.
This is to be achieved through a series of initiatives that will offer direct benefits to solar consumers.
“The proposed legislation includes several initiatives that will provide long-term stability and incentives to the U.S. solar industry,” said CEO Myke Clark.
“This includes an increase and extension of the investment tax credit for solar and a more flexible structure for companies like Solar Alliance to monetize that tax credit, both of which have the potential to accelerate Solar Alliance’s growth, support our ability to own and operate solar projects and contribute to the strengthening of the economy through clean energy project deployment,” he added.
From its current Investment Tax Credit (ITC) of 26-per-cent tax credit for solar systems, the proposed legislation seeks to increase that tax credit to 30 per cent for projects completed in 2022.
The proposed legislation also plans to extend the ITC another ten years, sending a strong long-term signal to the solar industry.
The Solar Energy Industries Association has noted that the solar ITC has helped the U.S. solar industry grow by more than 10,000 per cent since its implementation in 2006, with an average annual growth of 50 per cent over the last decade alone.
Currently, the business that owns a solar project claims the credit, a dollar-for-dollar reduction in the income taxes that a person or company would otherwise pay the federal government.
The proposed legislation stipulates that from 2023, companies will be allowed to sell most energy-related tax credits to other companies without resorting to complicated tax equity structures.
For the type of projects Solar Alliance is developing, this provision could reduce transaction costs and make monetizing tax credits much more streamlined.
Solar Alliance is an energy solutions provider focused on residential, commercial and industrial solar installations.
Solar Alliance Energy Inc. opened trading at C$0.07.
