FEB 05

The solar industry wants (and, quite frankly, needs) some stimulus. With the market completely dropping out in Spain and a huge oversupply in China, the solar industry is looking at some rough years ahead.

So, of course, the new administration and its colossal stimulus package is looking to make sure that the solar industry keeps its footing, while helping to meet Obama's goal of doubling solar energy production in the next three years.

As of today, the solar industry is looking for two big boosts. The House is looking to give them one while the Senate wants to give them the other. It's my hope that they'll get both, but that is by no means guaranteed.

The House bill would allow people funding solar installations to get their tax break refunded to them. Before this year, that wasn't a big deal, since big companies with names like Wachovia had lots of profit to write off. Now, since they don't, they don't need the tax breaks. So they want the money they would get as tax breaks in the form of a check. The House bill would give that to them through a DOE grant program.

The Senate bill on the other hand has a manufacturing (not installation) tax credit. That will keep the solar manufacturing industry in the U.S. growing and competitive with emerging solar manufacturers in China.

I honestly believe that both of these incentives are necessary. The solar industry is still very young, and money applied at this time will have a very large impact over the life of the industry. We're deciding now how a soon-to-be-billion-dollar-industry will be structured. Now is the time for incentives. So call your Representative and tell them to include "refundable tax credits for solar installations" and then call your Senator and ask him or her to make sure the stimulus package has "manufacturing tax credits for solar companies."

Comments (7)

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I Agree Wholeheartedly
written by Andre Walker, February 06, 2009

I fully expect the Obama administration to push for substantial incentives for both business and homeowners with regards to Solar installations.

http://www.YourObamaUpdate.com

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A third leg to the stool...
written by Greenat50, February 06, 2009

What would be even better is if the legislators would add a third leg to that stool and give consumers of solar power a tax break or rebate.

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Not going to happen
written by Jay Tee, February 06, 2009

Forget it- they would rather spend the money on condoms and racial preference programs. The 'stimulus bill' turns out to be a socialist bill.
So much for building infrastructure and fixing the lynchpins of the economy.
That's the 'change' we are getting.

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We'll make it happen...
written by NewWays, February 08, 2009

Thanks for this incentive, and I'll be sure to write our senator and post.

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if there is such oversupply in China
written by Tom Swann, February 09, 2009

why shouldn't the US and the rest of the world buy off them? I wholeheartedly agree that renewables need government support, but not sure propping up local manufacturing in spite of potentially cheaper options overseas is the best option. unless you also want to protect local jobs in the short term, etcetc

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real world effect of incentives
written by Anthony, February 17, 2009

we've been holding off on committing to Solar PV and Solar Hot Water until we saw what was in the stimulus bill.

Turns out, there are some real benefits in the bill:
- removal of incentive caps on Solar HW
- increased energy efficiency improvements incentive

This will make a *big* difference (thousands of dollars) in our green renovation. I had hoped for more, but at least this is a start.

see line by line details here:
http://greeninharlem.com/2009/...nergy.html

Best,
.//A.

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stimulas bill
written by John, February 24, 2009

Great, they print up solarcells, the government prints up money. Untill the money is worth 1/4 of what it is now in 6 months. What is that going to do to costs and financing.

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