Having originally introduced an initiative in 2010 to expand the federal investment tax credit (ITC) to those participating in a community solar project, Senator Mark Udall of Colorado has recently re-introduced his “Solar Uniting Neighborhoods (SUN) Act” in Congress. See here, bill here.
Follow the SUN Act Campaign here.
As the solar energy economy rapidly expands across the country, it is becoming clear that the traditional on-site model of residential solar ownership simply does not work for everyone. Whether challenged by rental or multi-unit building arrangements, shading, improper roof orientation or a host of other complications, there remains a large portion of the population that is unable to go solar.
In fact, estimates show that only 25% of the country’s residential building stock is suitable for installing on-site solar.
Fortunately, the concept of community solar has been developing in various shapes in sizes around the country as a means to enable more community members to invest in the power of the sun.
Colorado and Delaware, for example, have recently put forth policies that will enable robust opportunities for community solar arrangements. And with community solar projects popping up across the country (here and here), the concept is quickly gaining momentum.
At this time, however, participants in a community solar project are unable to take advantage of the 30% ITC, which stipulates that this tax credit is only available to on-site residential solar. Udall’s SUN Act would modify this requirement and would expand eligibility for the ITC to those participating in a community solar system.
Many are beginning to realize that there are customers with a keen interest in solar who simply do not have the ability to host a system on their property. Community solar arrangements are changing this and helping to ensure that a broader segment of the population will be able to reap the benefits of the surging solar energy economy.
Frankly, Udall’s SUN Act could be a game changer in this regard.
For more detail on the SUN Act or to follow the latest developments, we’ll be sure to keep you updated here.
