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The idea is that as solar costs continue to drop and project economics remain buoyed by the ITC, the case is stronger for utilities to claim losses and expenses as a result of increasing solar adoption.The form that’s taken so far is an overhaul to net metering policies.The Nevada PUC ruling in late December 2015 unanimously approved a new tariff structure for solar customers (and later modified its ruling in February 2016).The new tariff institutes a new, higher fixed monthly charge (i.e.Historically, net metering rules have given a 1:1 credit for excess generation meaning every excess k Wh generated is a k Wh credited.Currently, this mechanism of shifting energy generation from daytime to nighttime using credits is what helps incentivize and fuel solar growth at the consumer level.Previously, the ITC for solar energy was set to reduce to 10% after December 31, 2016.The credit is now extended through the end of 2019 at the 30% level, and will step down to 26% in 2020, 22% in 2021, and 10% in 2022 and future years.

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Utility-scale wind projects continue to be eligible to claim the ITC in lieu of the PTC as long as the PTC is in effect.Solar energy systems produce at their max typically in the middle of the day when the sun is most directly incident on the modules.