Climate Initiative Provides Significant Support for U.S. Solar Industry
Key provisions in proposed legislation would provide long term stability and growth potential for the solar industry
TORONTO and KNOXVILLE, Tenn., July 29, 2022 (GLOBE NEWSWIRE) — Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR, OTCQB: SAENF) is pleased to provide an overview of proposed legislation in the United States aimed at reducing greenhouse gas emissions by 40% below 2005 levels by 2030 through a series of initiatives that would directly benefit 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. These two key proposals 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.”
Investment Tax Credit Extension
The current Investment Tax Credit (“ITC”) is a 26% tax credit for solar systems. The proposed legislation increases that tax credit to 30% for projects completed in 2022 and extends the ITC another ten years, providing a strong long-term signal to the solar industry. According to the Solar Energy Industries Association, the solar ITC has helped the U.S. solar industry grow by more than 10,000% since it was implemented in 2006, with an average annual growth of 50% over the last decade alone.
Sale of Investment Tax Credits
Currently, the business that owns a solar project claims the credit. A tax credit is a dollar-for-dollar reduction in the income taxes that a person or company would otherwise pay the federal government. But many developers don’t have sufficient tax liability to take full advantage of the tax credits themselves. In these cases, developers partner with a third-party investor using tax equity financing. Utilizing third-party tax equity can be an expensive process. Under the proposed legislation, starting in 2023 companies would be allowed to sell most energy-related tax credits to other companies without having to resort to complicated tax equity structures. For the type of projects Solar Alliance is developing this provision could reduce transaction costs and make the process of monetizing tax credits much more streamlined.
“The proposed legislation remains subject to approval by Congress and President Biden, but this development represents a significant step forward for the U.S. solar industry. The provisions contained in the proposed legislation align perfectly with our growth strategy and will help support jobs and clean energy deployment in the U.S.,” concluded Clark.
Myke Clark, CEO
About Solar Alliance Energy Inc. (www.solaralliance.com)
Solar Alliance is an energy solutions provider focused on residential, commercial and industrial solar installations. The Company operates in Tennessee, Kentucky, North/South Carolina and Illinois and has an expanding pipeline of solar projects. Since it was founded in 2003, the Company has developed $1 billion of renewable energy projects that provide enough electricity to power 150,000 homes. Our passion is improving life through ingenuity, simplicity and freedom of choice. Solar Alliance reduces or eliminates customers’ vulnerability to rising energy costs, offers an environmentally friendly source of electricity generation, and provides affordable, turnkey clean energy solutions.
Statements in this news release, other than purely historical information, including statements relating to the Company’s future plans and objectives or expected results, constitute Forward-looking statements. The words “would”, “will”, “expected” and “estimated” or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different than those expressed or implied by such forward-looking information. Such factors include but are not limited to: uncertainties related to the ability to raise sufficient capital, changes in economic conditions or financial markets, litigation, legislative or other judicial, regulatory and political competitive developments and technological or operational difficulties. Consequently, actual results may vary materially from those described in the forward-looking statements.
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Source: Financial Content