Dive Brief:

• Sen. Charles Schumer (D-NY), has proposed changes to the federal investment tax credit for solar installations, arguing that its benefits should kick in once a project begins construction, rather than when it comes online.
• Schumer, reportedly in line to be the next Senate Democratic leader, has proposed extending the credit, in addition to changes in how it would function, saying customers need certainty to install panels and the solar industry must continue to grow.
• Schumer said his proposal would help meet the Obama administration's 28% renewable target by 2030, as well as keeping the solar industry in New York on a growth path.

Dive Insight:

Sen. Schumer has proposed changes to the solar investment tax credit which would fundamentally alter how the incentive works, and which the senator believes would keep his state's renewable industry growing at a robust pace. He made the announcement during a visit to the 7-acre "William Sun" field, the largest installation in the Rochester area.

“We can power up jobs in the Rochester-Finger Lakes Region by extending and modifying the solar investment tax credit," Schumer said in a statement.  "That's why I am first pushing to allow customers to reap the full benefits of this credit when they break ground on a solar project, rather than when they complete construction and why I'm pushing to extend the credit beyond 2016."

WilliamSun, the solar array that was the site of Schumer's press conference unveiling his plan last week, was built by Wayne County-based Sustainable Energy Development, which has grown 300% in recent years. Schumer said the company's success is an example of the tax credit's influence. "The 30% solar investment tax credit has been nothing short of a bright success. And yet while the credit is on the books through the end of 2016, the job-creating benefits it creates are in jeopardy,” said Schumer.

At the end of 2016 the tax credit will drop from 30% to 10% for commercial projects, and to zero for consumer installations.

The ITC has helped solar costs drop more than 73% since it was expanded in 2006, Schumer said in a press release. Residential costs have dropped by 45% since 2010, while utility-scale costs have dropped more significantly, with recent contracts at prices below 5 cents/kWh. Across the United States the solar industry employs 174,000 workers — up from 15,000 in 2005. That total includes about 3,300 in New York.

“Our state and our country are in a stage of strong meaningful growth in the solar industry, which now employs more people than the airline industry," said Dr. Susan Spencer, president of local solar development association ROCSPOT. "Legislation on the ITC is critical to ensure this growth is sustainable, to promote good jobs and solar installs here in New York."