Earth911.com's Sustainability In Your Ear Earth911 Podcast: Direct Solar America CEO Pablo Diaz On Solar Subsidies and 2020 Election
Jul 20, 2020
18:41
Pablo Diaz, founder and CEO of Direct Solar America, joins Earth911 to talk about the current state of solar subsidies in the U.S. Recently named one of CEO Magazine's Top 20 Dynamic CEOs, Diaz founded the company as a solar installer but transitioned to providing solar technology and installation services for home and business owners. Visitors to DirectSolarAmerica.com can enter their address and share energy bills to receive a complete analysis of the potential cost, subsidies available for, and a connection to a vetted local installer.
We discussed the current federal and state subsidies for solar installation around the country. The federal investment tax credit, which allowed solar buyers to write off up to 30% of their solar equipment and installation costs in 2019, fell to 26% this year and will go down to 22% in 2021 before falling to 10% in 2022. Individual states offer generous subsidies that add to the federal savings.
Considering that the oil industry receives approximately $650 billion a year in subsidies, Diaz thinks there is a high likelihood solar subsidies will continue for many years. However, Congress must vote to extend those subsidies or they will be sunsetted after 2022. That's why this year's state and national elections are so important to the future of U.S. solar growth. It took approximately 15 years for the first million installations to be completed, three years to reach two million, and the Solar Energy Industries Association expects to reach four million installations by 2023. But that represents only about 2 percent market penetration.
Diaz urges our listeners to vote for solar-supporting representatives and executive candidates. The nation needs to keep adopting solar to avoid 1.5-degrees Centigrade global warming by 2030, and remains far from that goal. Check out Direct Solar America to find out how your home can generate its own solar-powered electricity.
We discussed the current federal and state subsidies for solar installation around the country. The federal investment tax credit, which allowed solar buyers to write off up to 30% of their solar equipment and installation costs in 2019, fell to 26% this year and will go down to 22% in 2021 before falling to 10% in 2022. Individual states offer generous subsidies that add to the federal savings.
Considering that the oil industry receives approximately $650 billion a year in subsidies, Diaz thinks there is a high likelihood solar subsidies will continue for many years. However, Congress must vote to extend those subsidies or they will be sunsetted after 2022. That's why this year's state and national elections are so important to the future of U.S. solar growth. It took approximately 15 years for the first million installations to be completed, three years to reach two million, and the Solar Energy Industries Association expects to reach four million installations by 2023. But that represents only about 2 percent market penetration.
Diaz urges our listeners to vote for solar-supporting representatives and executive candidates. The nation needs to keep adopting solar to avoid 1.5-degrees Centigrade global warming by 2030, and remains far from that goal. Check out Direct Solar America to find out how your home can generate its own solar-powered electricity.