Uncertainty over the future of the wind production tax credit and the solar investment tax credit—and Congressional inaction on both matters—could pose a serious challenge to development in the renewable energy sector.
Wind energy had a huge year in 2012, with 13,128 megawatts (MW) of new wind capacity installed, but has failed to get anywhere close to matching that number since. The fact that the wind production tax credit (PTC) expired last year might have something to do with that.
Wind energy developers only need to have made minor investments by the 2013 deadline to qualify for the tax credit, so there are still a number of new installations in the works, and 2014 has so far seen a fair amount of growth in wind energy capacity. But that will not be the case for long if Congress doesn't act.
According to the American Wind Energy Association's latest quarterly market report, some 711 turbines capable of producing 1,254 megawatts of wind energy were installed in the US during the first three quarters of 2014, which is more than in all of 2013.
But while there are more than 13,600 more MW of wind capacity currently under construction, that number is expected to drop off sharply as projects are brought online and fewer new projects are started due to the expiration of the wind production tax credit (PTC).
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