US solar energy industry may be at risk due to tax credit cutsDecember 1, 2015
Solar industry could lose thousands of jobs as a result of diminished subsidies
The solar energy industry in the United States may soon see job cuts as a result of tax credits from the federal government expiring. The solar industry has already run into many problems in the country over the past few years, with several high-profile solar companies failing and closing down. The Solar Trade Association has surveyed some 200 solar companies, found that many jobs within the solar industry may be in danger if tax credits are not renewed or the degree at which the tax credits will be reduced is not revised.
Survey shows that as many as 18,500 jobs could be lost
According to the Solar Trade Association, some 1,200 jobs could be in jeopardy. If these findings reflect the whole of the solar industry, as many as 18,500 jobs could be at risk, with some 6,500 jobs already being lost in the solar field. The federal government’s tax credits support the development of new solar energy projects. They also provide companies with some degree of financial support, allowing them to operate effectively as the solar industry continues to grow quickly.
Solar energy is running into some turbulence in the US
The survey from the Solar Trade Association found that some 90% of solar companies believe that jobs are currently at risk. A quarter of these companies believe that their business, as a whole, will be at risk of failing if tax credits are not renewed or if they are reduced by a significant level. In July of this year, federal officials proposed an 87% cut in a key subsidy that supports domestic and commercial solar energy installations. The federal government is also considering excluding solar power from the Renewables Obligation, which supports large-scale projects.
Federal government believes that solar energy industry will continue to thrive
Federal officials believe that the solar energy industry will continue to thrive, despite the reduction of tax credits. The government will continue to show support for solar energy, of course, but officials no longer believe that the industry requires the level of support that the government is currently offering. How this will affect the solar industry has yet to be seen.