{"id":454938,"date":"2026-07-10T05:03:27","date_gmt":"2026-07-10T12:03:27","guid":{"rendered":"https:\/\/climatescience.press\/?p=454938"},"modified":"2026-07-10T05:03:29","modified_gmt":"2026-07-10T12:03:29","slug":"solar-tax-credits-1978-2026-never-enough","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=454938","title":{"rendered":"Solar Tax Credits: 1978\u20132026 (never enough)"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

From Master Resource<\/a><\/p>\n\n\n\n

By Robert Bradley Jr.<\/p>\n\n\n\n

Ed. Note<\/strong>: This repost is timely given the end of the Investment Tax Credit and the Production Tax Credit for unstarted projects as of July 4, 2026<\/strong>, pursuant to the One Big Beautiful Bill of 2025. For started (\u2018safe harbor\u2019) projects, it is business-as-usual<\/a>, which explains why the projects were started in the first place. If an unstarted project is completed by year-end (highly unlikely), it would also receive the ITC and PTC. Tomorrow, the history of wind power tax subsidization is chronicled.<\/p>\n\n\n\n

\n

\u201cNothing is so permanent as a temporary government program.\u201d<\/p>\n\n\n\n

\u2013 Milton and Rose Friedman, Tyranny of the Status Quo <\/em>(1983), 115.<\/p>\n<\/blockquote>\n\n\n\n

Aaron Nichols<\/a> on LinkedIn provided<\/a> a history of federal solar tax subsidies, beginning with Jimmy Carter. His point was to show that the numerous extensions (14 by my count) were bipartisan. My point, instead, is that on-grid solar is inherently noncompetitive against free market energies. [Note: AN blocked me]<\/p>\n\n\n

\n
\"\"<\/figure>\n<\/div>\n\n\n

Solar tax credits were not \u201ccreated by the Inflation Reduction Act\u201d or \u201cinvented by the Biden Administration,\u201d Nichols begins. He continues:

The first solar energy incentives were created in 1978 by Jimmy Carter\u2019s Administration. They\u2019ve even enjoyed bipartisan support and been renewed by Republican administrations! Here\u2019s a high-level history of solar tax credits:

1978<\/strong>: The Energy Tax Act of 1978 set the first federal solar ITC at 10% of project costs. \u200bCongress extended and modified this credit through the early 1980s, eventually making a 10% solar ITC permanent in 1992\u200b.

1992<\/strong>: The Energy Policy Act of 1992 established the PTC for renewable electricity. Originally aimed mainly at wind power, it provided 1.5\u00a2 per kWh for the first 10 years of a project\u2019s operation. Solar was not initially eligible for the PTC, but this law reaffirmed the permanent 10% ITC for solar.

2005<\/strong>: President George W. Bush signed the Energy Policy Act of 2005, a landmark energy bill establishing a 30% ITC for solar investments\u200b. This included a new 30% residential solar credit. The 30% rate was initially temporary but was later extended by the Obama administration.
.
2008<\/strong>: The Emergency Economic Stabilization Act of 2008 (enacted under President Bush and continued by President Obama) extended the 30% ITC for eight more years and removed the $2,000 cap on the residential credit\u200b.

2009<\/strong>: In response to the financial crisis, the American Recovery and Reinvestment Act of 2009 (Obama administration) introduced a cash grant option (the Section 1603 Treasury Grant Program) in lieu of the ITC\u200b.

2015<\/strong>: The Consolidated Appropriations Act of 2016 (enacted Dec 2015 under President Obama) provided a long-term extension with a phase-down for the solar ITC\u200b. It maintained the 30% ITC for projects commencing through 2019, then scheduled step-downs: 26% for 2020, 22% for 2021, and thereafter dropping to 10% for commercial and 0% for residential in 2022\u200b.

2020<\/strong>: In late 2020, under President Trump, Congress extended the phase-out schedule for solar credits by two years\u200b. COVID-19 relief legislation (Dec 2020) kept the ITC at 26% for projects begun in 2021 and 2022 (instead of dropping further), with 22% for those begun in 2023\u200b. There was speculation that President Trump might veto this extension, but he ultimately signed it into law\u200b.

2022<\/strong>: The Inflation Reduction Act (IRA) of 2022, passed under President Biden, not only renewed and increased these clean energy tax credits but also redesigned them. It restored the ITC to 30% and guaranteed it for at least a decade, revived the PTC for solar and other renewables, and introduced bonus credits and elective pay.<\/p>\n\n\n\n

Comment<\/strong><\/p>\n\n\n\n

\u201cClean energy doesn\u2019t have to be Red vs. Blue (and historically hasn\u2019t been),\u201d Aaron Nichols ended. \u201cInvestment in solar energy infrastructure benefits us all.\u201d Really?<\/strong><\/em> Tell that to Sunnova clients and investors<\/a>. Tell that to beleaguered taxpayers<\/a>. One wonders how long Mr. Nichols will still have employment, his job description being<\/p>\n\n\n\n

\n

I\u2019m a NABCEP-certified PV professional who\u2019s worked in solar sales, installation, and marketing. I\u2019ve researched and written on federal clean energy policies and have served as a source on the U.S. solar market for several major publications, including Business Insider, USA Today, and NerdWallet. My writing has appeared in Solar Today, PV Tech, and Solar Power World.<\/p>\n<\/blockquote>\n\n\n\n

One hopes his skill set can be redeployed to non-political profit centers. The private sector needs him more than a dying industry does. (And he should unblock me at part of his changeover.)<\/p>\n\n\n\n

Appendix: My ITC Summary<\/strong> (14 extensions)<\/p>\n\n\n\n

In Wind and Solar Power: Old, Uneconomic, Government Dependent<\/a>, I provided this similar summary of the Investment Tax Credit (ITC)<\/p>\n\n\n\n

\n

Fast forward to the 1970s when U.S. price controls on natural gas and oil led to shortages and fears of Peak Oil and Peak Gas. Solar became the political energy of choice for President Carter, beginning with a 10 percent Investment Tax Credit in 1978<\/strong>. Extensions followed in 1980<\/strong>, 1986<\/strong>, 1988<\/strong>, 1989<\/strong>, 1990<\/strong>, and 1991<\/strong>. [6]<\/strong><\/em><\/p>\n\n\n\n

The Energy Policy Act of 1992<\/strong>, increasing the ITC to 30 percent of invested capital, was extended in 2006<\/strong>, 2008<\/strong>, 2009<\/strong>, 2016<\/strong>, 2018<\/strong>, 2019<\/strong>, and 2022<\/strong>, the most recent being in Biden\u2019s Inflation Reduction Act. In all, solar has received 14 extensions<\/em> of its \u201ctemporary\u201d program to date. [8]<\/strong><\/em><\/p>\n<\/blockquote>\n\n\n\n

That\u2019s 14 extensions: 1980<\/strong>, 1986<\/strong>, 1988<\/strong>, 1989<\/strong>, 1990<\/strong>, 1991<\/strong>, 1992<\/strong>, 2006<\/strong>, 2008<\/strong>, 2009<\/strong>, 2016<\/strong>, 2018<\/strong>, 2019<\/strong>, 2022<\/strong>.<\/p>\n\n\n\n

Not good, and time for change.<\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cNothing is so permanent as a temporary government program.\u201d<\/p>\n

\u2013 Milton and Rose Friedman, Tyranny of the Status Quo (1983), 115.<\/p>\n","protected":false},"author":121246920,"featured_media":454946,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691818576,691818267,691844012],"class_list":["post-454938","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-inflation-reduction-act","tag-solar-power","tag-solar-tax-credits","fallback-thumbnail"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/07\/AQMVrl2UmUKTTe0usD7aCIIbnG15aSzAbLdYkl7W6KG-9VQjBLO8wHwTcNzeSYMrYJiZ5g7k8dVMaoBCCST6AyIT00b_fmcRnRsNBbH7C3YWwMzgQKGOMVI3C_ZTfdtu.jpeg?fit=2560%2C1705&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1UlI","jetpack-related-posts":[{"id":407292,"url":"https:\/\/climatescience.press\/?p=407292","url_meta":{"origin":454938,"position":0},"title":"Utility-scale 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