![]() Static technology developments, applicable to the balance of project equipment Potential for steel prices to decrease over time as trade tensions ease Safe harbor full#Technology advancements could impact alignment with the balance of project equipment at the time of full procurement and construction. No maintenance required during or after storage (confirm with the supplier) Relatively easy for suppliers to meet increased demand Suppliers may have issues ramping capacity to meet demand.Įnclosures designed for outdoors, expect simplistic storage requirements ![]() Technology advancements could impact alignment with the balance of project equipment at the time of full procurement and constructionĮvolving global policies create uncertainty in pricing and availability.Ĭonsider the impact on warranty start date. Minimal to no maintenance required during or after storage If stored appropriately, no degradation or quickly recoverable once installed Tariff exemptions based on technology or manufacture location may lead to low-cost opportunities. The possibilities are not limited to the items below, so take time to evaluate and consider what is best for your project and risk profile.Ī significant portion of project capital cost. Here’s a quick list of safe harbor options. There’s precedent for alternatives that qualify as starting construction. One important takeaway from the wind industry is that you have more than one option for equipment to safe harbor your project. A reliable estimate for your project cost will allow you to allocate the right amount of money, select the optimal safe harbor equipment, and reduce your risk of qualifying for the ITC after the step-down. Preparing early for safe harbor will put you in the best position to procure the right equipment, gain confidence in your cost estimates, feel good about your deadlines, and make the most out of your safe harbor opportunity.ĭeveloping conceptual project designs, layouts, and cost estimates is a necessary part of a safe harbor strategy. Module lead times today range from three to 12 months and will continue to change, given the rapidly-evolving tariff status and technology options. Negotiating supply agreements, coordinating transportation and storage logistics, and planning for safe harbored equipment can take time. Tie up your safe harbor plan neatly by obtaining independent delivery verification.Negotiate your safe harbor supply agreements carefully.Evaluate equipment options for safe harbor and know your suppliers.Know what your project is going to cost. ![]() So, what do you need to know about safe harboring for solar projects? Here are a few key tips to consider. ![]() Based on ICF’s experience with wind, the safe harbor equipment option is a popular choice because the requirements are generally understood and relatively simple. There are two methods to pre-qualify for the ITC: 1) safe harbor equipment, or 2) continuous, custom site work construction. What you need to know about the safe harbor option This move will also allow time to continue development and potentially avoid solar tariffs imposed on imports now through 2021. Following this example, the solar industry is gearing up to safe harbor equipment to qualify later projects for the ITC. This step-down mirrors that of the widely-used Production Tax Credit (PTC) for wind projects, which started its step down in 2016. Projects starting construction in 2020 and placed in service by 2024 can qualify for 26% ITC, while projects starting construction in 2021 can qualify for 22%. For projects starting construction in 2019, the 30% ITC will be available as long as projects are placed in service by the end of 2023. Last year, the United States Internal Revenue Service (IRS) issued guidance that clarified the future of the Investment Tax Credit (ITC) for US solar projects. ![]()
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