Feb 18 2009

Solar Stimulus

Posted by: Jonathan Marshall

Last fall, the solar and other renewable energy industries won a major victory when Congress gave them handsome investment tax credits. But once the applause died down, investors realized the credits were good only if developers (or their financial partners) earned a taxable profit. In today's economy, that's become a rarity. The industry sank back into doom and gloom.

So the economic stimulus package that President Obama signed into law Tuesday comes as welcome relief to those beleaguered industries: now they can receive cash grants from the Department of Energy in place of traditional tax credits. 

The Solar Energy Industries Association estimated that the bill's tax provisions will stimulate 60,000 jobs in the solar industry just in 2009 and 110,000 jobs over the next two years.

Blake Jones, CEO of Namaste Solar Electric in Boulder, Colo., who introduced President Obama at the stimulus bill's signing ceremony, said that as a result of the new law "we have plans to increase the workforce by 20 percent this year and 40 percent through 2010." 

Closer to home, the CEO of SolarCity in Foster City, told a reporter, "We should be adding 16 or so crews over the next few months. This is a great step toward resolving our challenges."

Solar installers are betting on homeowners doing the math and figuring today's deals are too good to refuse. David Baker of the San Francisco Chronicle surveyed a number of installers and estimated that the base price of a typical 3-kilowatt home system is just over $24,000. But with state rebates administered by PG&E, and the federal tax credit, the net cost to typical homeowners comes down to less than $13,800. Think of the money you'll save--and the jobs you'll create--by making the investment.

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