Nearly $1 Billion in U.S. Solar Power Projects Affected by COVID-19

SUGAR LAND--April 15, 2020--Researched by Industrial Info Resources (Sugar Land, Texas)--While most U.S. industries are seeing slowdowns and delays due to the COVID-19 pandemic, solar power projects are facing a particularly rough time, as many of their components are manufactured in other countries, including China. Trade disruptions are making these parts harder to get, pushing out project dates and possibly affecting projects' eligibility for the U.S. solar Investment Tax Credit (ITC), which currently mandates a 26% credit against tax liability if a project begins construction or a company spends 5% of a project's capital cost before the end of the year. The ITC will step down to a lower 22% rate in 2021. In addition, safety precautions, such as stay-at-home orders and reduced numbers of on-site workers, are slowing projects that have already begun. While there have been calls to extend the 26% rate of the ITC into next year, Congress has not acted on this yet. Industrial Info is tracking $996 million in U.S. solar projects affected by COVID-19.

Companies featured: Consolidated Edison Incorporated (NYSE:ED), Walmart Incorporated (NYSE:WMT)