Hot Topic : Solar Investment Tax Credit (ITC) 2016

Interesting  illustration for how the dynamics of one issue - the use of a renewable energy source -  moves from educating the public to becoming a public opinion issue that turns through legislative action into the adoption of both national and state policy where finance and tax credit move all that forward.
More important to keep it mind is the fact that every kilowatt KW of electricity we get from solar power is one less KW we buy from public utility companies.
The same dynamics process for examples where global and national topics impact local issues [yes, we are all connected] can be seen in both affordable housing and diversity/inclusion/equality for all protected classes. Attention and action by citizens and voters who inform and express their opinions to their elected representatives locally in the Mesa City Council, the Arizona Legislature and the U.S. Congress can engage to promote positive benefits.

While solar technologies are changing and evolving at the same time [think about how CFLs and LEDs changed residential and commercial electric-energy consumption for lighting], financial incentives have been approved for a  nitty-gritty component: installation of solar energy.

All to the good, right?
Yes it creates competition [see previous post on this site from July 23, 2015 where Mesa companies Solar City and Vivint are included] with job creation or job decline depending on whether it's in the old-growth fossil-fuel burning industry or in the new-growth industries for renewable energy.
The dynamics go on with state regulatory agencies protecting entrenched interests. Here in Arizona it's the Arizona Corporate Commission [ACC] recently getting shaken up by conflict-of-interest charges. Who's interest you might guess
quite quickly - and that's exactly why the public and new-growth industries join forces.

The solar Investment Tax Credit (ITC) is one of the most important federal policy mechanisms to support the mobilization for solar energy in the United States.
The Solar Energy Industries Association [SEIA] successfully advocated for a multi-year extension of the credit in 2008, which provided business certainty to project developers and investors. The ITC continues to drive growth in the industry and job creation across the country.
Recognizing the signifance of the ITC, SEIA and Bloomberg New Energy Finance (BNEF) developed an analysis that explored the enormous impact of the five-year extension - and what happens if we let it expire.
Extending the ITC amounts to an additional 69 gigawatts (GW) of solar deployment between 2016 and 2022. Without it, the solar energy industries could lose 80,000 jobs in 2017.

But Hey! take a look at an infographic from Ecova, a total energy and sustainability management company published on December 18, 2015.
See >> report from Ecova/Solar TIC
The beauty in looking at infographics is that they say a lot without so many words.
Pay attention, dear readers, this is important to "get the picture".
On December 18th, as part of the Omnibus Spending Bill, Congress extended the 30 percent solar incentive tax credit that was due to expire at the end of 2016. The incentive will now run until 2019, followed by a step down to end at 10 percent in 2022. Analysts at GTM Research and the Solar Energy Industries Association have estimated that the tax credit could increase solar installations by 54 percent over the next five years.
The article continues covering issues brought up in previous post here on Jan 01 and Jan 07 2016 and Oct 19, 2015]     

"According to a study published by the National Renewable Energy Laboratory in October, approximately 32 percent of customers using a cash-purchase approach to solar equipment will achieve a breakeven on the capital investment, which currently sits at a median $2.17/W (not including any state or utility incentives). When examining the loan scenario, the figure jumps to 64 percent.

The largest driver in breakeven prices is local utility rates, although building use is also a significant factor. The building types with the highest breakeven price (and therefore the highest potential cost benefit, according to the study) are small offices, warehouses, and schools. Retail establishments, medium and large offices, quick service restaurants, outpatient medical facilities, and supermarkets all see moderate average breakeven prices, and hotels, hospitals, and full-service restaurants tend to see low breakeven prices.
Incentives and net-metering regulations also play a factor in the breakeven on solar equipment. Given the number of factors driving the cost benefit of such installations, evaluations should be performed on a site-by-site basis to determine the impact of switching to solar.
The extension of this credit for wind and solar companies, combined with falling costs of distributed energy resources (DERs) will continue to keep DERs a hot topic in 2016. Each customer’s energy goals are unique, and warrant their own conversation. . . "