SEIA calls for 10-year ITC extension, sets goal for 50-GW solar capacity by 2030

The Solar Energy Industries Association, along with more than 100 organizations, is calling on US officials for a 10-year extension of the federal solar Investment Tax Credit, as SEIA has also set a goal of 50 GW of annual domestic production solar capacity by 2030.

In order to compete, the US government must invest in manufacturers as solar energy manufacturing is intensely competitive globally and overseas manufacturers are often aided by significant support from local and national governments, SEIA President and CEO Abigail Ross Hopper said in a June 21 statement.

"While the broader US solar industry continues to flourish, America's solar manufacturing sector has languished," Hopper said. US companies need a suite of pro-manufacturing policy options designed to provide demand certainty, incentivize investments in production capacity and support ongoing factory production, she added

In the S&P Global Platts Analytics Long-Term Forecast, which incorporates the adaptation of a national Clean Energy Standard commencing in 2030, "we assume tax credit extensions for wind and solar continue given their propensity for bipartisan support and ability to facilitate new renewable build," said Kieran Kemmerer, Platts North American power and gas analyst. "Our Long-Term Forecast features nearly 230 GW of installed utility-scale solar capacity by 2030. With federal policy not starting until 2030, state-level policy, tax credits and cost declines are large drivers of US solar build in the 2020s."

US solar manufacturing

SEIA supports US Senator Jon Ossoff's "Solar Energy Manufacturing for America Act," introduced June 21 by the Georgia Democrat to rapidly boost American solar manufacturing, accelerate the transition to clean energy, and support American energy independence, according to a statement from Ossoff's office.

Ossoff's proposal will create a production-linked tax credit for the solar industry, which will be critical to long-term success, according to Ross Hopper.

In September, SEIA set a target of 100 GW of annual renewable energy manufacturing production capacity by the end of the decade. To reach that, SEIA has now set the solar-specific target of 50 GW by 2030.

"This aggressive goal would create American solar manufacturing capacity equal to over 150% of the 19.2 GW of solar deployed in 2020 and covers all key elements of a solar energy system, including polysilicon, ingots and wafers, cells and modules, racking and trackers and inverters," Ross Hopper said in the statement. "The United States doesn't need to produce every solar component installed domestically, but we do need to fill critical gaps in our supply chain and dramatically expand domestic production capacity. The long-term health of our industry depends upon it."

Solar energy accounted for about 11% of US renewable energy consumption in 2020, up 22% from 2019 as US consumption of renewable energy grew for the fifth year in a row, reaching a record high of 11.6 quadrillion Btu or 12% of total U.S. energy consumption, according to the US Energy Information Administration.

ITC extension

The Coalition for Clean Energy Jobs and Innovation, comprised of more than 100 organizations representing clean energy interests, manufacturers, homebuilders, electric cooperatives and a variety of other industries, is calling on political leaders to prioritize clean energy in upcoming infrastructure legislation.

"Solar and storage are proven job creators that can modernize America's power grid and tackle the climate crisis," Ross Hopper said in the June 21 statement. "The solar and storage industry stands ready to put Americans back to work, but Congress must act now to unleash the clean energy economy."

A 10-year extension of the ITC with direct pay will give businesses the certainty they need to make long-term investments and drive clean energy deployment at the scale needed to tackle climate change, according to SEIA's statement. Adding a direct pay provision will make project financing less dependent on the availability of tax equity, which will help to speed deployment and overcome pandemic-driven economic challenges still affecting clean energy companies.

"Fuel cell technologies and hydrogen energy will be a critical component of America's future energy policy in helping to both reduce emissions while creating good-paying jobs" Morry Markowitz, president of the Fuel Cell and Hydrogen Energy Association, said in SEIA's statement. "The long-term extension of the ITC will help ensure America continues to be the leader in technology innovation by helping scale up clean energy industries like the fuel cell and hydrogen sector, fuel economic growth, and protect the environment."

To reach 100% clean electricity by 2035, annual solar deployment from 2024 to 2028 will need to be twice as a large as the current forecast, according to SEIA. The solar ITC is a proven policy driver and was responsible for a 10,000% increase in the size of the solar industry from 2006 to 2019 and continues to be one of the most influential solar policies.