Solar ITC cliff scare and rebound (2015)
December 2015What Happened
The 30 percent Solar Investment Tax Credit was scheduled to drop to 10 percent at the end of 2016. Developers rushed projects to qualify, pulling supply forward and creating a near-term price spike, until Congress extended the credit in the December 2015 omnibus bill.
Outcome
Signed PPA prices rose in late 2015 as buyers and developers scrambled to lock in terms ahead of the expected cliff.
The extension unlocked a multi-year buildout that ultimately drove solar PPA prices to all-time lows by 2020.
Why It's Relevant Today
The current One Big Beautiful Bill Act construction deadline creates the same kind of cliff dynamic, with developers racing to qualify before July 4, 2026.
