Two Democrats are seeking to increase the U.S. federal renewable fuel tax credit. This will make it easier for homeowners to install solar shingles such as those made by Tesla Inc. and GAF Energy. They believe it will help to boost a new segment of the industry.
Mikie Sherrill, a New Jersey Congresswoman, and Jon Ossoff from Georgia introduced the bill. It would extend the solar tax credit for small businesses and residential consumers to include whole roofing systems that incorporate solar power technology.
The 26% tax credit currently in effect only covers solar roof tiles. However, it does not cover other roof components. This is a problem for the industry as it hinders new customers.
They believe there is a good chance that the measure will be included in the Democrats’ budget reconciliation bill. This bill is expected to implement some of President Joe Biden’s most important climate change measures, including those affecting power and transportation.
Sherrill, whose district contains GAF’s headquarters, said that it’s these types of tax code fixes that can really stimulate innovation. “I want GAF and other solar roof tile producers across the country and around the globe.”
She stated that she spoke with GAF about the topic in May.
Solar roof tiles are being sold by companies like Tesla and GAF, but they have struggled to get customers.
Residential systems will see the end of the solar investment credit in 2024. Biden has advocated for a 10-year extension to the credit.
GAF, a unit within private conglomerate Standard Industries is the most advanced in the development of the technology. According to Reuters, the company had installed its product on more that 2,000 U.S. rooftops.
Tesla has been installing solar roofs for three years, but it has not yet disclosed the number. The company didn’t respond to a request for comment.
Ossoff stated, “This forward-looking legislation anticipates how technology will advance.”