We've financed about 30 projects, mostly distributed commercial solar installations but some utility scale as well, with 9 more in the process of closing, across 12 different states. Again the price utilities pay for solar energy and their obligation to buy that energy varies by states. In NC for example utilities HAVE to buy 100% of the output of approved solar systems, at a published rate that is equal to their average cost of acquiring additional electricity from traditional sources, which is FAR below retail and far less than I see in power purchase agreements on distributed systems in other states.

In those states where utilities have to buy solar power at a rate greater than what they could otherwise acquire electricity for, then that would be a subsidy I guess, paid by the utility. But SolarCity only directly sees that benefit on systems they own; indirectly it drives more business volume of projects for them to build and earn fees on.

Yes while the cost to build a solar array is rapidly falling, the ITC is still necessary to make projects work economically for investors. Accelerated depreciation is available to most businesses, but the ITC makes a difference.

I can not speak to residential