The Tennessee Valley Authority (TVA) is halting an incentive program for businesses and homeowners to install solar power, according to a report on newschannel5.com.
The incentive program had provided customers with a 30 percent tax credit for using solar energy in addition to a credit to their electric bill. According to the report, the TVA has said it has already spent $31 million of the $50 million in the program’s fund since the incentive was created 14 months ago. The TVA has said it is putting a moratorium on the program due to excessive demand, particularly from major consumers of electricity. The program currently has pending applications worth $100 million pending.
The moratorium could create huge funding problems for solar installation companies that were depending on the credits to fund new installations. The TVA has said it is working on a short term solution before a decision can be made on whether to expand the scope of the program. That decision would have to wait until August.
Smyrna Rexall in Smyrna, Tennessee, recently decided to install solar panels on the roof of its retail store when its electricity bill doubled after moving its business into a bigger space. Michigan’s Detroit Edison is also offering $25 million in incentives for businesses and homeowners to install solar power.