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Report: “SEPA Tech Brief Normalization of Solar Investment Tax Credits”
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Normalization of Solar Investment Tax Credits Technical Brief – June 2011

 

In 2008, the solar investment tax credit (ITC) eligibility was expanded to include electric utilities, creating an interest in utility ownership of solar assets. To date, utilities have announced or are implementing over 900 MW of utility-owned projects, which is a growing, but important, fraction of the overall solar market over the next five years. However, the IRS code contains certain provisions, called “normalization rules,” which can have an adverse effect in utilities’ use of the ITC and the resulting project costs. This brief describes the issue of normalization in more depth and offers case studies of utilities as it relates to normalization of solar ITCs.

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