Clean energy organizations look for relief for industry due to COVID-19
Leading organizations in the clean energy sector are calling on Congressional lawmakers to extend tax incentives to help renewable and clean grid industries deal with the impacts of the COVID-19 pandemic.
The leaders of various renewable energy associations sent a letter to U.S. House and Senate leadership, stating the growth of the clean energy sector is at risk due to several COVID-19 related impacts.
The impacts include “supply chain disruptions that have the potential to delay construction timetables and undermine the ability of wind, solar and hydropower developers to qualify for time-sensitive tax credits, and a sudden reduction in the availability of tax equity, which is crucial to monetizing tax credits and financing clean energy projects of all types,” the letter said.
It was sent by officials from the American Council on Renewable Energy (ACORE), American Wind Energy Association (AWEA), Energy Storage Association (ESA), National Hydropower Association (NHA), Renewable Energy Buyers Alliance (REBA), and the Solar Energy Industries Association (SEIA).
Specifically, the coalition of organizations is requesting an extension of start construction and safe harbor deadlines to ensure that renewable projects can qualify for renewable tax credits despite delays associated with supply chain disruptions. They are also asking for provisions allowing renewable tax credits to be available for direct pay to facilitate their monetization in the face of reduced availability of tax equity. Further, they are looking for the enactment of a direct pay tax credit for stand-alone energy storage to foster renewable growth and help secure the more resilient grid we need in these difficult times.
