This policy brief investigates the impact that recent Congressional tax reform proposals would have on the solar industry. As the first policy brief in an ongoing series, it outlines both the challenges and the opportunities for the solar industry within tax reform. The GW Solar Institute's analysis finds that all recent tax reform proposals would increase the cost of solar energy substantially compared to current policy. Even the Baucus tax reform proposal, which includes a 20 percent Investment Tax Credit (ITC) for solar, would increase costs by 34 percent over current policy due to its drastic changes to current depreciation schedules and the minimal impact from a lower corporate rate. No matter which other broader changes to the tax system Congress adopts in tax reform, additional energy sector policies would still be necessary to maintain solar’s economic competitiveness relative to current law.
Softer Solar Landings: Options to Avoid the Investment Tax Credit CliffGW Solar Institute
Federal tax policies have been an important driver for solar’s recent remarkable growth, but without action during the 114th Congress, the 30-percent investment tax credit (ITC) for solar and other clean energy technologies will expire at the end of 2016. If Congress were to allow this policy shock to occur, the economics of solar investments would worsen, reducing solar deployments in 2017 and beyond. Solar jobs would be lost, and solar cost reductions would be delayed. While these negative impacts of current law are undeniable, their magnitude remains an open question. This policy brief estimates the impacts that current law would have on the solar industry. It also formulates several
policy alternatives and estimates their effectiveness at mitigating the negative impacts of the investment tax credit cliff embedded within current law.
Guidance on the Streamlined Energy and Carbon ReportingEMEX
Streamlined Energy and Carbon Reporting (SECR), the proposed carbon reporting scheme is set to replace the Carbon Reduction Commitment (CRC), and its anticipated start date of April 2019 is approaching.
This session offers guidance on how organisations can prepare, what will be the qualifying criteria and how the new reporting framework will benefit the companies.
The GW Solar Institute working paper, Bridging the Solar Income Gap, details a wide range of policy tools to increase access to affordable solar energy, particularly for lower income families. These urgently needed tools could help unlock solar energy for all Americans and drive billions of dollars of solar wealth into lower income communities.
Sustainable Infrastructure Assistance Program (46380-023)
TA 9511–INO: Indonesia Energy Sector Assessment and Priorities 2020–2024
Energy Policy Feedback (Power)
Focus Group Discussion
Jakarta, 18 October 2019
Softer Solar Landings: Options to Avoid the Investment Tax Credit CliffGW Solar Institute
Federal tax policies have been an important driver for solar’s recent remarkable growth, but without action during the 114th Congress, the 30-percent investment tax credit (ITC) for solar and other clean energy technologies will expire at the end of 2016. If Congress were to allow this policy shock to occur, the economics of solar investments would worsen, reducing solar deployments in 2017 and beyond. Solar jobs would be lost, and solar cost reductions would be delayed. While these negative impacts of current law are undeniable, their magnitude remains an open question. This policy brief estimates the impacts that current law would have on the solar industry. It also formulates several
policy alternatives and estimates their effectiveness at mitigating the negative impacts of the investment tax credit cliff embedded within current law.
Guidance on the Streamlined Energy and Carbon ReportingEMEX
Streamlined Energy and Carbon Reporting (SECR), the proposed carbon reporting scheme is set to replace the Carbon Reduction Commitment (CRC), and its anticipated start date of April 2019 is approaching.
This session offers guidance on how organisations can prepare, what will be the qualifying criteria and how the new reporting framework will benefit the companies.
The GW Solar Institute working paper, Bridging the Solar Income Gap, details a wide range of policy tools to increase access to affordable solar energy, particularly for lower income families. These urgently needed tools could help unlock solar energy for all Americans and drive billions of dollars of solar wealth into lower income communities.
Sustainable Infrastructure Assistance Program (46380-023)
TA 9511–INO: Indonesia Energy Sector Assessment and Priorities 2020–2024
Energy Policy Feedback (Power)
Focus Group Discussion
Jakarta, 18 October 2019
What Happened for Solar During the 2013 Texas Legislative Session? Rick Borry
Russel Smith is the co-founder and executive director of Texas Renewable Energy Industries Association (TREIA).
Hear Russel review and interpret the 2013 Texas Legislative Session and its impact on the solar energy market. Be sure to join this LIVE webinar to find out how the legislature's actions will affect you and your business during the question-and-answer segment following Russel's presentation.
Distributed energy resources (DERs) can provide net benefits to the electric system (e.g., congestion relief) and broader society (e.g., emission reductions). However, despite these advantages, the deployment of high penetrations of DER has proved challenging. Against this backdrop, the electric utility is often singled out as a fundamental barrier to deployment of DER assets. To overcome the perceived electric utility shortcomings, many stakeholders conclude that a completely new model is needed for the electric industry.
ScottMadden disagrees with this assessment and instead believes electric utilities maintain natural advantages that can be leveraged to deploy renewables and DER assets as well or better than some models being offered. In our 51st Phase II Roadmap, ScottMadden proposes leveraging the natural advantages of the electric utility in order to accelerate the deployment and penetration of DER assets.
For more information, please visit www.scottmadden.com.
Photovoltaic industry witnessing a paradigm shift Aranca
Photovoltaic industry witnessing a paradigm shift Find special reports on industries, latest innovations & technology trends, business analysis, intellectual property & patent industry & other knowledge reports created by Aranca, a global provider of outsourced research & analytics services firm & a trusted research partner for various global clients.
Let’s tackle the myths about all the components contained within supplier’s public lighting invoices.
Many within the unmetered supplies world are unsure what elements are contained within supplier’s invoices; and who gets what of their respective charges?
So let’s break down every aspect of a council’s public lighting & highways invoice.
To transparently discuss every line, every charge, any hidden charges and where the various payments go?
Also examine how the power gets to a typical 70 watt SON lamp on a residential street. The journey from the power station via a 400kV grid to the single phase exit point for the lamp.
This journey includes aspects of the national grid company, the Grid Supply Point (GSP) and the Distribution Network Operator (DNO). All these routes attract charges and losses (loss factors) for which the customer will ultimately pay.
So the presentation and workshop will open every box – from load factor, to billing at meter and billing at grid supply point; with an explanation.
Also tackle the complex DNO’s DUoS HH charges with reference to black, yellow and green charging periods.
This should result in ILP members having a clear understanding of energy accounts, and being able to manage expected consumption.
Also to suggest how the latest technology, such as CMS, can be realised through half hourly dynamic equivalent pseudo metering.
This brings in the perennial question – what are the differences between half hourly and non-half hourly trading for unmetered supplies?
It is envisaged that there will be plenty of opportunity for audience interaction to ask detailed and probing questions – these will be discussed and answered!
The presentation will almost conclude with the details of the next financial impact that councils will be faced with – electrical market reform – and when that will happen?
To end with the latest Energy saving UMS techniques and initiatives and how these can be made into tangible benefits on your bills!
Talk by Andrew Eades, npower
What Happened for Solar During the 2013 Texas Legislative Session? Rick Borry
Russel Smith is the co-founder and executive director of Texas Renewable Energy Industries Association (TREIA).
Hear Russel review and interpret the 2013 Texas Legislative Session and its impact on the solar energy market. Be sure to join this LIVE webinar to find out how the legislature's actions will affect you and your business during the question-and-answer segment following Russel's presentation.
Distributed energy resources (DERs) can provide net benefits to the electric system (e.g., congestion relief) and broader society (e.g., emission reductions). However, despite these advantages, the deployment of high penetrations of DER has proved challenging. Against this backdrop, the electric utility is often singled out as a fundamental barrier to deployment of DER assets. To overcome the perceived electric utility shortcomings, many stakeholders conclude that a completely new model is needed for the electric industry.
ScottMadden disagrees with this assessment and instead believes electric utilities maintain natural advantages that can be leveraged to deploy renewables and DER assets as well or better than some models being offered. In our 51st Phase II Roadmap, ScottMadden proposes leveraging the natural advantages of the electric utility in order to accelerate the deployment and penetration of DER assets.
For more information, please visit www.scottmadden.com.
Photovoltaic industry witnessing a paradigm shift Aranca
Photovoltaic industry witnessing a paradigm shift Find special reports on industries, latest innovations & technology trends, business analysis, intellectual property & patent industry & other knowledge reports created by Aranca, a global provider of outsourced research & analytics services firm & a trusted research partner for various global clients.
Let’s tackle the myths about all the components contained within supplier’s public lighting invoices.
Many within the unmetered supplies world are unsure what elements are contained within supplier’s invoices; and who gets what of their respective charges?
So let’s break down every aspect of a council’s public lighting & highways invoice.
To transparently discuss every line, every charge, any hidden charges and where the various payments go?
Also examine how the power gets to a typical 70 watt SON lamp on a residential street. The journey from the power station via a 400kV grid to the single phase exit point for the lamp.
This journey includes aspects of the national grid company, the Grid Supply Point (GSP) and the Distribution Network Operator (DNO). All these routes attract charges and losses (loss factors) for which the customer will ultimately pay.
So the presentation and workshop will open every box – from load factor, to billing at meter and billing at grid supply point; with an explanation.
Also tackle the complex DNO’s DUoS HH charges with reference to black, yellow and green charging periods.
This should result in ILP members having a clear understanding of energy accounts, and being able to manage expected consumption.
Also to suggest how the latest technology, such as CMS, can be realised through half hourly dynamic equivalent pseudo metering.
This brings in the perennial question – what are the differences between half hourly and non-half hourly trading for unmetered supplies?
It is envisaged that there will be plenty of opportunity for audience interaction to ask detailed and probing questions – these will be discussed and answered!
The presentation will almost conclude with the details of the next financial impact that councils will be faced with – electrical market reform – and when that will happen?
To end with the latest Energy saving UMS techniques and initiatives and how these can be made into tangible benefits on your bills!
Talk by Andrew Eades, npower
The GW Solar Institute, a research partner on the National Solar Jobs Census 2014, joined The Solar Foundation and BW Research Partnership in announcing that the solar energy industry added over 31,000 new jobs in 2014. This remarkable growth rate is almost twenty times the national average and accounts for 1 out every 78 new jobs created in the US since Solar Jobs Census 2013.
This whitepaper summarizes recommendations from the Expanding Low-Income Solar in DC Roundtable, hosted by the GW Solar Institute and DC Solar United Neighborhoods (DC SUN) on April 9, 2014. Extensive conversations among roughly 70 key stakeholders in the low-income housing, solar, finance, and government sectors revealed that the necessary leadership, consensus, and resources are available to launch a groundbreaking low-income solar initiative in the District.
Sam Baldwin, CTO of Office of Energy Efficiency and Renewable Energy at DOE, presented at the GW Solar Institute Symposium on April 19, 2010. For more information visit: solar.gwu.edu/Symposium.html
Don Paul, Director of the USC Energy Institute and former CTO, presented at the GW Solar Institute Symposium on April 19, 2010. More information at solar.gwu.edu/Symposium.html
Rhone Resch | Trends in Solar Energy Technology and Costs | 2014 Solar SymposiumGW Solar Institute
Solar panel prices have dropped 80% in the last five years, dramatically changing the economics and feasibility of going solar.
Long-time solar industry leader Rhone Resch will talk about the rapidly changing solar energy landscape and where he sees solar going in the future.
Beth Galante | Innovation Showcase | 2014 Solar SymposiumGW Solar Institute
This is an Ignite Style presentation (five minute max presentations with slides that automatically advance every 15 seconds) that was a part of the 2014 Solar Symposium Innovation Showcase.
Beth Galante, Chief Energy Efficiency Officer, PosiGen LLC
Making Third Party Ownership Work for Lower-Income Clients: Find out how bundling energy efficiency and solar, government incentives, and standardization is helping low-income individuals, families, and businesses in Louisiana achieve greater fiscal autonomy and energy independence by lowering their energy consumption.
Jon Hillis | Innovation Showcase | 2014 Solar SymposiumGW Solar Institute
This is an Ignite Style presentation (five minute max presentations with slides that automatically advance every 15 seconds) that was a part of the 2014 Solar Symposium Innovation Showcase.
Jon Hillis, Vice President, Prospect Solar
Combining Solar with Green Roofs: Find out how Green Roof Integrated PV in urban areas like DC can take advantage of the symbiotic relationship between solar panels and green roof plants, alleviate competition for roof space, and address energy concerns and storm water drainage issues that are prevalent in larger cities.
Hannah Masterjohn | Innovation Showcase | 2014 Solar SymposiumGW Solar Institute
This is an Ignite Style presentation (five minute max presentations with slides that automatically advance every 15 seconds) that was a part of the 2014 Solar Symposium Innovation Showcase.
Hannah Masterjohn, Program Director of New Markets, VoteSolar
Taking Shared Solar Nationwide: Find out how shared solar is expanding nationwide, how it differs from green tariffs, and how different states are attempting to use the policy as a tool to address barriers to low-income solar investments.
Arthur L. Haubenstock, Senior Counsel at Perkins Coe presented "Energy Supply Challenges & The Value of CSP with Thermal Energy Storage" at the GW Solar Institute's 5th Annual Symposium on April 23, 2013
Andrea Luecke | Tracking Solar Jobs, Solar Jobs Census BriefingGW Solar Institute
Andrea Luecke, Executive Director of The Solar Foundation, releases state specific data at the Solar Jobs Census Briefing on 2/11/2014.
Materials generously provided by The Solar Foundation and the Environmental and Energy Study Institute.
John Lushetsky, Program Manager of the Solar Energy Technologies Program at the DOE Office of Energy Efficiency and Renewable Energy, presented on April 19, 2010 at the GW Solar Institute Second Annual Symposium. more information at http://solar.gwu.edu/Symposium.html
This research poster was created as a part of the 2014 Solar Symposium and is by James Mueller and Amit Ronen.
Fitting Clean Energy into a Reformed Tax Code” Given the looming expiration of clean energy tax incentives and the likelihood of comprehensive tax reform, the clean energy sector need to be developing pragmatic and politically attuned alternatives that fit within the context of tax reform principles. The GW Solar Institute is launching a research series, Fitting Clean Energy into a Reformed Tax Code, which seeks to develop innovative policy solutions and inform policymakers on the full range of impacts that these potential options could have.
This presentation covers the basics legal considerations associated with solar financing for non profits, including federal incentives and Massachusetts incentives and the future of solar under the Trump Administration
Economic balance in oil and gas contractsMaría Serna
Mexican new government has emphasized its concerns regarding the government take in the awarded oil contracts. It is not clear if these worries will lead to an audit or some type of “adjustment” for the government take via legislation. In these times, understanding the risks and protection mechanisms available is of paramount importance to oil companies.
Earlier this year the Parliamentary Information Office of the Parliamentary Yearbook reported on the Government’s plans for detailed consultations with industry and consumers over the planned changes to the feed-in tariff scheme for solar energy. This will form part of a major feature on environment, sustainable energy and climate change in the next edition
Both with significant changes of interest to technology business
> Higher cash refunds as Provinces match increase in federal SR&ED expenditure limits
> Multi-Media and e-business get increased tax credits
> Ontario Tax Holiday for companies that commercialize University R&D
Understanding the New Tax Law: Real EstateCBIZ, Inc.
The real estate sector fared well under the new tax law introduced as the Tax Cuts and Jobs Act (TCJA). Specifically, the
TCJA dropped the corporate rate by 40 percent, increased benefits for depreciation and expensing, and added a new
deduction against qualified business income for pass-through entities.
The Chancellor gave a combined Spending Review and Autumn Statement on 25 November 2015. He announced a number of measures that will affect businesses, individuals and the UK as a whole.
We have produced a 12 page Autumn Statement report which includes details of these, including sections on business initiatives, pensions, changes to personal allowances and more.
This research poster was created as a part of the 2014 Solar Symposium and is by The Solar Foundation.
The National Solar Jobs Census series is a product of The Solar Foundation®, conducted annually since 2010. The inaugural Census established the first credible employment baseline for the domestic solar industry.The Census surveys solar employers and quantifies jobs across all solar technologies and industry subsectors. Since 2010, employment has grown by 53%, representing nearly 50,000 new U.S. solar jobs.
Consensus Recommendations on How to Catalyze Low-Income Solar in DCGW Solar Institute
This research poster was featured at the 2014 Solar Symposium and is by Amit Ronen and Anya Schoolman.
Extensive conversations among roughly 70 key stakeholders in the low-income housing, solar, finance, and government sectors revealed that the necessary leadership, consensus, and resources are available to launch a groundbreaking low-income solar initiative in the District. The Expanding Low-Income Solar in DC Roundtable, hosted by the GW Solar Institute and DC Solar United Neighborhoods (DC SUN) on April 9, 2014, developed the recommendation that the city pursue a direct dollar-per-watt rebate program that incentivizes low-income participation and community solar projects, combined with a credit enhancement program that unlocks needed capital.
This project was featured at the 2014 Solar Symposium and analyzes both the solar potential of low income areas in the District as well as the resulting economic impact a full build-out could have.
This poster was created by Dan Moring and Ekandayo Shittu.
Dan Moring is a Graduate Research Analyst at the GW Solar Institute. He is a a student in the Sustainable Urban Planning program at GW, where his research focuses on integrating and analyzing spatial components of energy and building data.
Ekandayo Shittu is an Assistant Profession at the George Washington University School of Engineering and an Affiliated Faculty member at the GW Solar Institute. His research focuses on the economics and management of energy technologies, the design and impacts of climate change response policies on sustainability efforts, and patterns of consumer behavior in energy consumption in the emerging era of smart grid technologies. He’s a Lead Author on he IPCC Fifth Assessment report on climate change mitigation.
Bracken Hendricks | Innovation Showcase | 2014 Solar SymposiumGW Solar Institute
This is an Ignite Style presentation (five minute max presentations with slides that automatically advance every 15 seconds) that was a part of the 2014 Solar Symposium Innovation Showcase.
Bracken Hendricks, CEO, Urban Ingenuity
PACE and Affordable Housing: Find out how Property Assessed Clean Energy (PACE) financing can fund clean energy retrofits and help solve broader financial challenges for affordable housing developers, owners, and property managers by providing a new capital solution for affordable housing preservation.
Annie Harper | Innovation Showcase | 2014 Solar SymposiumGW Solar Institute
This is an Ignite Style presentation (five minute max presentations with slides that automatically advance every 15 seconds) that was a part of the 2014 Solar Symposium Innovation Showcase.
Annie Harper, Coordinator, Yale Community Carbon Fund
Lessons Learned from Low-Income Retrofits: Find out how the Yale Community Carbon Fund overcame implementation challenges to implement energy efficiency and renewable projects in low-income communities in Connecticut.
Jason Walsh, Senior Advisor for the Department of Energy’s Office of Energy Efficiency and Renewable Energy, shares research and program updates from the Department of Energy.
Materials generously provided by the U.S. Department of Energy and the Environmental and Energy Study Institute.
Bob Powell, President of SunEdison North America, shares his perspectives on public policy impacts for the industry on 2/11/2014.
Materials generously provided by SunEdison and the Energy and Environmental Study Institute.
Katherine Gensler, Director of Government Affairs at The Solar Energy Industries Association presented "2012 Year-in-Review" at the GW Solar Institute's 5th Annual Symposium on April 23, 2013
Sunny Dispositions: Modernizing Investment Tax Credit Recapture Rules for Sol...GW Solar Institute
DOWNLOAD HERE: http://solar.gwu.edu/Research/Meister_Sunny_Dispositions_ITC_Recapture.pdf
Joel Meister, GW BA ‘07 and a third-year student in the GW Law School (currently working at the Solar Energy Industries Association), provided research on the subject of modernizing certain tax rules that affect the solar energy industry. In his paper, ”Sunny Dispositions: Modernizing Investment Tax Credit Recapture Rules for Solar Energy Project Finance After The Stimulus”, Meister examines how solar project developers will grapple with the transition from the expired Section 1603 Treasury Grant Program to the Investment Tax Credit that requires “recapture” of tax benefits if a company sells or transfers its solar system within five years of installation. Meister traces the genesis of the recapture rules and explores the negative implications of the recapture rules for the solar industry.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
2. Tax Reform, a Looming Threat to a Booming Solar Industry
2
To make matters worse for solar, tax reform could modify
or eliminate the accelerated depreciation schedule
entirely. The three recent major tax reform proposals
would do just that. On November 21, 2013, former Senate
Finance Chairman Baucus proposed replacing the
accelerated depreciation system with a simplified system.
Under this proposal, solar would be depreciated using a
100 percent declining balance method at a rate of 5
percent per year. Property would never be depreciated
fully, and only 40 percent of a solar asset would be
depreciated in its first 10 years. On February 26, 2014,
House Ways and Means Chairman Camp released his tax
reform legislation that lowered the corporate rate to 25
percent, eliminated the ITC, and lengthened depreciation
periods using a straight-line method with an adjustment
for inflation. Wyden-Coats
1
followed a similar approach,
with a slightly lower corporate tax rate and no inflation
adjustment for depreciation.
Figure 1 below illustrates the levelized cost and PPA price
for a standard 20 MW solar photovoltaic (PV) plant under
the current tax system before and after 2016, as well as
under the Baucus and Camp proposals. We found that
changes to MACRS and the ITC under leading tax reform
proposals would increase solar PV prices by as much as 58
percent. Even the Baucus proposal, which included a 20
percent ITC for solar, raises costs substantially due to its
drastic changes to the depreciation schedule.
Figure 1. Recent Tax Reform Proposals Increase Cost of Solar PV
* Parameters: 28% corporate rate (assumed), 100 percent declining balance method at 5 percent per year, 20% ITC
** Parameters: 25% corporate rate, straight-line depreciation over 25 years (assumed), and no ITC
Current Law
Federal tax policies have been a primary driver for
solar’s remarkable recent growth. Over the past two
years, both residential and non-residential solar
installations have doubled, and utility PV installations
have more than quadrupled. The two key tax policies
for solar are the 5-year Modified Accelerated Cost
Recovery System (MACRS) and the 30 percent
Investment Tax Credit (ITC) under Section 48 of the
Internal Revenue Code for commercial systems and
Section 25D of the Internal Revenue Code for
residential systems.
The Energy Policy Act of 2005 (P.L. 109-58) established
a 30 percent ITC for both commercial and residential
solar systems for one year. It was subsequently
extended for an additional year before Congress
passed an eight-year extension (Cantwell-Ensign, The
Clean Energy Tax Stimulus Act of 2008, S. 2821 [110
th
])
as part of the Emergency Economic Stabilization Act of
2008 (P.L. 110-347). If Congress fails to extend the ITC
before the end of 2016, the credit for residential
systems will expire, and the credit for commercial
systems will revert to the permanent 10 percent level
established as part of the Energy Policy Act of 1992
(P.L. 102-486).
The Tax Reform Act of 1986 (P.L. 99-514) created the
Modified Accelerated Cost Recovery System (MACRS),
which determines the depreciation schedule for many
property investments including solar generation assets.
Under MACRS solar generation assets are classified as
a five-year property.
3. Tax Reform, a Looming Threat to a Booming Solar Industry
3
Our analysis follows the approach recently taken by Mark Bolinger of Lawrence Berkeley National
Laboratory
2
and represents his lowest-cost scenario: “tax appetite from the project sponsor.” We use
the same input assumptions (e.g. $2.5 per WAC and 5.5% interest on project-level debt), except that
here the capacity factor is 20 percent
3
instead of 30 percent. While the lower assumed capacity is more
representative of utility-scale projects within states with moderate solar irradiance intensity, it leads to
slightly higher predicted prices than Bolinger found. Furthermore, Bolinger found that actual costs
could be over 3 cents per kilowatt higher for scenarios in which project sponsors monetize the credit
through tax equity investors.
Additional Measures Needed to Maintain Solar Competitiveness under Tax Reform
As illustrated above, changes to the tax code in areas outside energy specific credits can profoundly
alter the economics of solar projects. Moreover, with only modest growth in electricity load expected,
4
encouraging new capital investment through the tax code will be critical to accelerating the turnover of
existing electricity generation capital.
To better understand how tax reform could impact solar, we modeled four potential tax systems with
the following politically feasible assumptions:
1. “Current” Tax System or No Tax Reform: 35% corporate rate, MACRS, and 10% ITC after 2016;
2. “Conventional” Tax Reform: 25% corporate rate and slower, economic depreciation;
3. “Middle Ground” Tax Reform: 30% corporate rate and a partially modified depreciation system;
4. “Sweeping” Tax Reform: 25% corporate rate, full expensing economy-wide, and an upstream
carbon tax starting at $20 per ton of CO2.
Figure 2. Cost of Solar PV under Alternative Tax Systems
* Straight-line depreciation over 12 years is assumed
** Although the price is higher than the current tax system after 2016, solar PV could actually be more competitive
under sweeping reform due to a carbon tax’s impact on electricity rates and investment decisions.
Figure 2 above shows the relative costs of electricity generated from solar PV under these four tax
systems. While “conventional” reform is the most expensive, “middle ground” reform only reduces
4. Tax Reform, a Looming Threat to a Booming Solar Industry
4
costs slightly. Only under “sweeping” reform would solar PV compete as well as under the current tax
system after 2016. None of the tax systems alone can match the current tax system with the 30 percent
ITC. Therefore, the inclusion of additional measures would be required as part of any tax reform
proposal, if Congress employs a “do-no-harm” approach to the solar industry competitiveness.
Macroeconomic Impacts of Alternative Depreciation Schedules and Corporate Rates
Although accelerated depreciation is one of the top five corporate tax expenditures, eliminating it will
not actually broaden the tax base because it will change as corporate profits increase or decrease.
Eliminating accelerated depreciation may also impede growth because it effectively reduces the
marginal cost of capital. A recent analysis found that combining a 5-percent reduction in the corporate
rate with a partial repeal of accelerated depreciation “results in a macroeconomic outlook that is worse
by several measures than the current law baseline, with potentially lower consumption, employment,
real GDP, and capital stock – particularly in the 2017-2021 period.”
5
Similarly, another recent study found that under a “dynamic scoring” analysis of tax reform, accelerated
depreciation economy-wide could more than pay for itself in revenues from induced economic growth
over the long term.
6
Although there has been no agreement for how to analyze tax reform, the Joint
Committee on Taxation’s macroeconomic analysis of the Camp tax reform proposal
7
included both
static and dynamic estimates.
Congress could decide to take the middle ground, reducing the corporate rate by less and only
partially extending depreciation schedules. This would mitigate the implicit preference of existing
capital over new capital in all three of the recently released Congressional tax reform plans.
Congress could also decide that a carbon tax is an efficient replacement for energy tax expenditures
that could pay for some of the reductions to the corporate rate as well as full expensing economy-
wide. Such an approach would remove the added barrier to investment that extending depreciation
imposes,
8
in addition to leveling the playing field by internalizing carbon pollution into the
marketplace.
Principles for Pragmatic and Politically Attuned Tax Reform Solutions
There is broad agreement that well-designed and politically feasible clean energy tax incentives need
to be predictable over the long term, scalable to drive investment without setting up a boom and bust
cycle, and accessible to diverse user types such as distributed generators, public power, and new
market entrants.
Although the future of energy tax provisions is uncertain,
9
key Congressional decision makers on both
sides of the aisle have also made clear in public and private statements that they want future energy
tax incentives to meet the following principles:
• Technological Neutrality — Congress should not be picking technology winners and losers by
designating which specific technologies are eligible for certain tax credits. Incentives should
enable new, innovative technologies to compete fairly in the marketplace.
5. Tax Reform, a Looming Threat to a Booming Solar Industry
5
• Simplicity and Transparency — Any new incentive should be as simple and transparent as
possible to maximize market certainty and reduce administrative burdens or gaming.
• Enforceability — Any new incentive should prevent ‘double dipping’ with other incentives and
be carefully written to avoid loopholes or unintended uses of the credits.
• Public Interest — Any new incentive must use taxpayer dollars wisely and serve a clear public
interest such as bridging the commercialization “valley of death,” leveling the playing field
internationally, or addressing other market barriers.
• Cost-Effectiveness — Taxpayer funds should not support fully mature technologies or projects
that would otherwise occur without the credit. Incentives should automatically sunset when
technologies meet certain penetration rates.
• Pro-Growth — As part of comprehensive tax reform, any new incentive must also provide a net
win for the economy. This principle assumes even greater significance if future tax reform
proposals are subject to new dynamic scoring rules.
Future Research and Analysis
There is broad agreement that well-designed and politically feasible clean energy tax incentives need
to be predictable over the long term, scalable to drive investment without setting up a boom and bust
cycle, and accessible to diverse user types such as distributed generators, public power, and new
market entrants. Accounting for these principles, future GW Solar Institute policy briefs in this series
will systematically develop and analyze potential tax policy solutions in the following areas:
• Financing for Emerging Energy Technologies — Analyze the relative effectiveness and role of
new, technology-neutral demand-pull policies in unlocking clean energy innovation and
economic growth. Alternatives will include an Investment Tax Credit (ITC) based on market
maturity, a production tax credit (PTC) based on regional energy diversity, and state energy
credit block grants.
• Leveling the Cost of Capital — Bringing parity to energy financing by lowering clean energy
capital costs. Alternatives will include loan funds to lower the cost of debt and Master Limited
Partnerships (MLPs) and Real Estate Investment Trusts (REITs) to lower the cost of equity.
• Investing in Critical Sectors — Finding ways to increase the level and predictability of private-
sector investments in critical national priorities. Alternatives will include research,
development, and demonstration (RD&D) incentives and full expensing for priority sectors like
energy and infrastructure that face chronic underinvestment.
Although some have explored clean energy MLPs and REITs as replacements for tax incentives,
10
our
preliminary analysis suggests these structures would not be effective substitutes for federal tax or other
incentives (i.e. accelerated depreciation and ITC) and would have to be modified legislatively to work
together with other incentives.
11
This view on the limits of clean energy MLPs and REITs is not unique.
12
6. Tax Reform, a Looming Threat to a Booming Solar Industry
6
These structures would likely only assist the most mature technologies because stable, growing cash
flows are essential for their success. MLPs and REITs could also be perceived as narrowing the tax
base. Consequently, both of these structures could be eliminated, instead of expanded, as part of
comprehensive tax reform. Senate Finance Chairman Wyden recently clarified his view that MLPs and
REITs should either be eliminated for everyone or expanded to include renewable energy.
13
Quantifying the interplay of potential policy solutions within the context of broader tax reform and
energy market dynamics is critical to this research initiative. We plan to investigate how these policies
(and various combinations thereof) would impact the electricity price and profitability for a wide range
of electricity generation technologies, including solar, wind, biomass, geothermal, natural gas, nuclear,
and carbon capture and sequestration. We will also consider multiple clean energy price cases within
the four different tax reform scenarios, described earlier as “current,” “conventional,” “middle-ground,”
and “sweeping.”
Another focus of the research initiative will be assessing the macroeconomic impacts of the policies
and the rate at which existing generation assets are replaced. A macroeconomic analysis will help to
evaluate important metrics:
• The relative effectiveness of the proposed policies for overturning existing capital and
deploying new electricity generation capital;
• The value of policy certainty and predictable incentives; and
• The impact on federal tax receipts.
7. Tax Reform, a Looming Threat to a Booming Solar Industry
7
ENDNOTES
1
S. 727 [112
th
]
2
Mark Bolinger (May, 2014): “An Analysis of the Costs, Benefits, and Implications of Different Approaches to Capturing the Value
of Renewable Energy Tax Incentives,” Lawrence Berkley National Laboratory.
3
A 20 percent capacity factor corresponds to NREL’s System Advisor Model output for a 2-axis tracking system in Texas.
4
Energy Information Administration (2014): “Annual Energy Outlook 2014.”
5
Nicholas Bull, Tim Dowd, and Pamela Moomau (2011): “Corporate Tax Reform: A Macroeconomic Perspective,” National Tax
Journal, 64(4), 923-942.
6
Michael Schuyler (2014): “Comparing the Growth and Revenue Effects of Four Proposed Depreciation Systems: Baucus, Camp,
Wyden and Full Expensing,” Tax Foundation, Fiscal Fact No. 433.
7
Joint Committee on Taxation (2014): Macroeconomic Analysis of the “Tax Reform Act of 2014,” JCX-22-13.
8
Derek Dorn, Lee Peterson, and Michael Dorenfeld (2014): “MACRS Depreciation and Renewable Energy Finance,” US
Partnership for Renewable Energy Finance, whitepaper.
9
It is important to note that none of these proposals have passed either House of Congress or even the committees of
jurisdiction. When Congress takes up tax reform in earnest, the resulting tax system could be quite different.
10
Felix Mormann (2014): “Beyond Tax Credits: Smarter Tax Policy for a Cleaner, More Democratic Energy Future,” Yale Journal
on Regulation, to appear in Vol. 31.
11
See supra note 10; Molly E. Sherlock and Mark P. Keightley (2011): “Master Limited Partnerships: A Policy option for the
Renewable Energy Industry,” Congressional Research Service, R41893.
12
Steve Corneli, Daniel Mintzer, Steven Taub, John Stanton, John Mulligan, and Derek Dorn (2014): “Clean Energy and Tax
Reform: How Tax Policy can Help Renewable Energy Contribute to Economic Growth, Energy Security and a Balanced Budget,”
US Partnership for Renewable Energy Finance, whitepaper.
13
Senator Wyden's Keynote Speech at the 7
th
Annual Future of Energy Summit, Bloomberg New Energy Finance, April 7, 2014.