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WBS SOLAR PUMP - - US solar ITC policy is expected to be postponed

WBS SOLAR PUMP - - US solar ITC policy is expected to be postponed

May 27,2020

According to the continuous tracking of the US market, the US Treasury is likely to decide to postpone the ITC policy of the solar industry in the near future.


A group of US senators from both parties sent a letter to Treasury Secretary Mnuchin on April 23, explaining the impact of the new crown epidemic on the new installed capacity of the US solar industry, and asking him to extend the ITC safe harbor period for energy projects by one year.


On May 21, 2020, Senators Lisa Merkovsky (R-AK), Susan Collins (R-ME) and Tom Tirith (R-NC) wrote to the Ministry of Finance again In view of the significant impact of the coronavirus pandemic on the US solar industry in early 2020, it is required to change the safe harbor requirements for solar projects.


The letter reads: "The ITV policy implemented from 2016 will last for four years, and it is hoped that it will be temporarily extended to five years. This will solve the unforeseen interruptions encountered by project developers due to COVID-19 and provide existing projects Certainty that the business needs to advance. "


In a letter to Senator Chuck Grassley, the US Treasury Department responded: "Considering these changes, the US Treasury Department plans to modify the relevant rules in the near future."


In this regard, SEIA (American Solar Energy Industry Association), which has been promoting the extension of the ITC safe harbor, said:


"This change will undoubtedly help, especially for solar and wind power projects, because the delivery time of these projects is longer and closer to the end of their continuous safe harbor. The continuous safe harbor is completely in the Ministry of Finance and The IRS is under the control, so they have the ability to change it immediately and should do so. "


It is worth noting that the recommendation to the Treasury Department came from the signing of the bipartisan parliamentarians who have always sang the Taiwan drama. This also sends a strong signal that both parliamentarians have recognized that investment in the new energy industry is expected to promote the epidemic The U.S. industrial economy also shows that new energy investment has already crossed the blue / red bipartisan struggle.


Under the influence of the Trump administration's policy of preferring traditional energy, since 2017, the photovoltaic trade war between China and the United States has been superimposed on the upgraded version of the photovoltaic dual anti-policy policy from 2012, and the products have been traded from the first round. The field of components and batteries has deepened, and then spread to the main components of photovoltaic systems such as frames, brackets, glass, and inverters.


The exclusion of the 201 guarantee for double-sided components is just a loophole that the USTR accidentally made, and the guarantee was revoked by USTR after another round of efforts.


The decline of the ITC subsidy policy has undoubtedly hit the US solar and wind energy industry from another level, coupled with the impact of the new crown epidemic, the industry is not optimistic about the new installed capacity of the United States in 2020.


According to SEIA's survey, in the first half of 2020, ☞☞ the solar industry's five-year new employment achievements – was cleared by Covid-19.


If the ITC subsidy withdrawal can be postponed for one year, superimposing the recent price reduction rhythm of the global photovoltaic market, the US solar market may face great development opportunities in the second half of this year and next year.


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