Jun. 19 at 5:52 PM
$AES $CWEN
New solar projects can still be viable without tax credits, but it depends heavily on location, technology, financing structure, and power purchase agreements (PPAs). Here’s a detailed breakdown:
---
⚠️ 1. Without Tax Credits: Solar Becomes More Expensive
The Investment Tax Credit (ITC) currently offsets 30% of capital costs—a massive economic advantage.
Without it, developers must cover 100% of the cost, making return on investment slower and requiring higher PPA prices to stay profitable.
---
💰 2. Viability Factors Without Tax Credits
Factor Effect Without Credits
Utility-Scale Solar Margins shrink; viability depends on land cost, sun hours, interconnection cost, and PPA terms. Still viable in places like Texas, Arizona, and parts of California.
Corporate PPAs May still pencil out if buyers (e.g. Meta, Amazon) commit to premium green energy prices.
Cost Declines Continued fall in solar module and battery prices could offset some of the lost incentive.
