With the federal Investment Tax Credit (ITC) for solar energy projects expiring, industry stakeholders argue the technology remains viable without the subsidy. PV Magazine reports that the end of the ITC, which sunsetted on July 4, will remove layers of complexity and tax liability risks for asset owners. The article notes that developers can bring projects online more quickly and cheaply as equipment and labor costs decrease, and that solar generation is leading the power sector, providing over 90% of all new power added to the U.S. grid in Q1.
Without the ITC, the article highlights that solar remains among the lowest-cost sources of new generation. It cites a 2026 Lawrence Berkeley National Laboratory analysis indicating that commercial and industrial nominal utility rates have climbed 26-27% since 2019, making onsite solar and storage a more attractive hedge against rising rates. The article also notes that state-level incentives remain a durable foundation, with states like Massachusetts and New Jersey implementing long-term incentive programs.
Industry players are adapting by offering more flexible Power Purchase Agreement (PPA) terms to help businesses hedge power prices. PV Magazine reports that companies are moving toward operating in any environment, with or without the ITC, ensuring the future of strong players in the space.
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