Traditional financing models, including leases and power purchase agreements, have played a vital role in reducing risk and enabling solar projects. Looking ahead to the next wave of growth, innovative financing models such as Property-Assessed Clean Energy (PACE) and incentive programs for community solar will play a key role in accelerating the reach of solar in the United States.
The market for community solar is unique in that it allows customers to access renewable energy through a solar power purchase agreement (PPA) without any risk. As a part of the most recent tax plan, the U.S. Congress has issued two provisions that are expected to accelerate community solar deployments. Under the new tax plan, community solar projects will be granted both an expansion of depreciation allowances and a reduction in the corporate tax rate from 35 to 21 percent, the lowest in nearly 80 years, according to data from the Tax Policy Center.