On Tuesday, Reuters reported that a pair of Democrats aim to expand a U.S. federal renewable energy tax credit; particularly, this initiative looks to make it easier for consumers to install roofs with solar shingles. Accordingly, this bill for the installation of solar roofs like those made by Tesla Inc and GAF Energy could boost a nascent segment of the industry.
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About the bill – boosting credits for solar roofs
In this sense, New Jersey Congresswoman Mikie Sherrill and Georgia Senator Jon Ossoff introduced a bill that, if approved, would expand the solar tax credit for residential consumers and small businesses. Therefore, this initiative would include entire roofing systems that integrate solar power technology.
Indeed, and it is worth noting, the current 26% tax credit for solar roofs only covers the tiles but not other parts of the roof. Thus, several companies in the industry see this as an obstacle to attracting new customers.
Therefore, both lawmakers see a good chance for the measure. Accordingly, they will fold the proposal into the Democrats’ budget reconciliation bill. Additionally, the latter initiative could carry out some of President Joe Biden’s key climate change measures; particularly those affecting power and transport.
In this sense, Congresswoman Mikie Sherrill commented; “It’s these kinds of fixes to the tax code that can really spur innovation.” Considering that Sherrill’s district includes GAF Energy’s headquarters, she added; “Indeed, I want GAF and others to be producing those solar roof tiles across the nation and the world.”
Similarly, Georgia Senator Jon Ossoff said; “This is forward-looking legislation, anticipating how the technology will progress.”
A slow progress
In fact, and it is worth noting, Sherrill said she met with GAF on the topic in May. Notably, this conversation came as companies such as Tesla and GAF have been slow to attract customers, despite selling roof tiles.
GAF is a unit of private conglomerate Standard Industries. Besides, it is among the farthest along in developing the technology. To date, and according to information reported by Reuters, the company installed its product on more than 2,000 U.S. rooftops.
Similarly, Tesla started its solar roof product installation about three years ago. However, the Company doesn’t have any disclosures on how many devices it put up.
More concerning is that the existing solar investment tax credit is scheduled to be phased out for residential systems in 2024. However, President Biden has insistently pushed for a 10-year extension of the credit.
