![]() By 2050, wind generation in the PTC/ITC Extension case is more than 40% higher than in the Reference case.īy contrast, the Early PTC/ITC Sunset case assumes existing tax credits expire in 2019. With the continuation of the tax credits, wind generation continues to increase throughout the projection. The extension of the PTC/ITC results in a decline in new wind capacity installations relative to the Reference case in the near term, because wind projects built to take advantage of tax credits before they expire are built later in the projection period. The PTC/ITC Extension case assumes existing tax credits are extended at the full credit value through 2050. EIA assumes a two-year construction lead time for new utility-scale solar PV plants, so that plants entering service in 2019 receive the full 30% tax credit, but those entering service in 2022 only receive 26%. ![]() The 30% ITC for solar power also begins to decline in 2020, ultimately reaching 10% for utility-scale and commercial systems and expiring completely for residential systems by 2022. As a result, wind plants entering service in 2020 will receive the full PTC value, and those entering service in 2022 will receive 60% of the full PTC value. 2029), Congress extended the qualifying deadlines and phaseout schedules for the Production Tax Credit (PTC) and the Investment Tax Credit (ITC).įor onshore wind and other PTC-eligible technologies, the PTC value in dollars per megawatthour began declining by 20% annually in 2017 and expires completely for projects starting construction after 2019.ĮIA assumes that it takes four years to construct and bring wind plants online. In the most recent enactment, as part of the December 2015 budget reconciliation bill (H.R. These cases also show the effect of the recently approved tariffs on imported solar photovoltaic (PV) cells and modules.įederal tax credits available for renewable technologies have been modified and extended several times since their first enactment in 1992. In addition to the Reference case of EIA’s latest Annual Energy Outlook 2018 (AEO2018), which reflects current laws and regulations, three side cases show the potential effects of extending or eliminating certain tax credits. grid are sensitive to federal policies, especially federal tax credits that are currently scheduled to expire or diminish by 2022. The timing and magnitude of adding wind- and solar-powered electricity generators to the U.S. Energy Information Administration, Annual Energy Outlook 2018 ![]()
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