JUN 09

The US may take a hit if solar company SunPower packs up and heads to other global markets. What is pushing SunPower away? The possibility of losing the investment tax credit (ITC). The ITC provides a 30% tax break to companies buying solar panels, which is a seriously significant number for consumers, and often the deciding factor for investing in solar. Lose the ITC, they could lose significant business, and therefore lose a reason to stick around in the US.

CEO of SunPower Tom Werner announced that if the US federal government doesn’t renew the ITC, the company is likely going to head to other markets, such as France, Greece, Italy and Australia. Should they go, it’s a loss for the US, and not for SunPower. Werner puts it bluntly, “If the ITC doesn’t happen, we can move our business elsewhere and make up for that. Is that a preferred solution? No. Does America lose jobs with that? Yes. But can we as a company hit ‘08 and ‘09 without the ITC? Yes.”

Of course, SunPower isn’t the only solar company wringing its fingers over the ITC. The entire solar industry would be affected if the credit isn’t renewed, and smaller companies would likely kick the bucket. The downward spiral this could cause in the solar industry is not something I’d like to see. Perhaps the growing pressure on politicians to support alternative power will give a boost to the forces behind renewing the ITC.

Via Earth2tech

Comments (6)

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written by Corban, June 10, 2008

The tax credit exists to support infant industries until they can crawl by themselves. Someone should make a business case for why it should stick around. Selling a vision of the future will require some slick marketing, though.

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flex those muscles
written by bob bobberson, June 10, 2008

I do agree with the above statement that tax incentives should be used to nurse infant industries until they can compete on their own, but at the same time if this solar company can flex its muscle and get a few $$ from a gov't then it has the right to do so. It appears this company is either arrogant or confident.

Its odd that some companies move away due to taxes and others move to a country due to 'corporate welfare.' I understand why you would tax and drive away a polluting mature industry to support and attract a growing clean industry. It seems obvious, but I want to avoid the current farm subsidy scheme that we have here in the US.

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Australia is doing the same
written by Ron Holmes, June 10, 2008

Hi,

I think they should re-evaluate their stance on moving to Australia. The federal government just axed the rebate for middle to high income earning families and businesses. Now if your household earns less than $100k you get the rebate. The problem is, these are not the households or businesses that consider solar in the first place. We need help from Al on this one!

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Not a Level Playing Field
written by Mo Rousso, June 10, 2008

The fact of the matter is that solar energy could stand on its own without subsidies, providing that the subsidies for the oil and gas industry were also removed. Until the playing field is leveled, and if economic stimulus is your objective, then subsidies are required to keep this baby crawling.

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Neighborhoods
written by M, June 20, 2008

I'd like to see reduced taxes and write offs until i can see Solar panels on 4/5 roofs in every neighborhood. I believe we get enough people 80-90% of homes and companies to have solar panels, we can instead of power plants have battery facilities. Massive energy coming from the grid into the power plant, and being held. It will happen.

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written by wedding dresses, October 13, 2009

Of course, SunPower isn’t the only solar company wringing its fingers over the ITC. The entire solar industry would be affected if the credit isn’t renewed,

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