Tariffs imposed by Donald Trump on the import of solar panels have slowed the growth of the solar industry in the United States. However, the sector has managed to overcome the hurdle and a rebound is expected for 2019.
In the midst of a trade war between China and the United States, the solar energy sector has been severely affected by the imposition of a 30% tariff on the importation of solar panels and the cancellation of several projects to ‘installations of photovoltaic systems.
The measure caused the loss of 10,000 jobs in 2017, 8,000 jobs in 2018 and the stagnation of its growth.
2016 was the best year in the history of solar energy in the United States. However, this momentum weakened over the following years.
Despite these limitations, the growth outlook has improved and a rebound is expected for 2019. An estimated 7% growth and a 2.5% increase in employment, according to the Solar Foundation.
The Foundation warns its predictions may be wrong, but believes the industry is improving. He has the following facts in his favor:
Increase in investments.
Falling renewable energy costs and advancements in storage technology will drive the industry’s growth.
Extension of the tax credit for solar panels.
The 2016 Federal Expenditure Law extended the solar panel tax credit for five more years. Such a tax credit is known as an investment tax credit (ITC).
Thanks to it, you can deduce the 30% of the installation cost of a solar power system from federal taxes. It applies to residential and commercial systems.
It was approved in December 2015 and it is intended to apply as follows:
From 2016 to 2019.
30% of the cost of the system is maintained, whether for residential or commercial use.
You can deduct 26% of the cost of the system, for both uses.
The fees are reduced to 22%.
There is no credit for residential systems. Only commercial systems can deduct 10% of your taxes.
Although, of course, changes in government can alter this programming.
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