August 6, 2010-
This week, the Senate gave final approval to a $26 billion package that will save states from having to lay off thousands of teachers and fund Medicaid. It's expected that the House will give the package its approval next week.
This package hits the renewables market hard, as part of the approved funds will be drawn from a $6 billion Department of Energy fund. This same fund was scavaged last year when the Senate cut $2 billion from it to give to the Cash for Clunkers program. Now, $1.5 billion more will be cut in order to help fund the $26 billion package for teacher salaries and Medicaid. This leaves the DOE fund at $2.5 billion.
I spoke today with Dan Adamson, vice president of government affairs for the Solar Energy Industries Association (SEIA). He said solar will most likely be more affected than other renewables by this overturn.
"Solar has more applications for loan guarantees than any technology, so it’s likely to really hit solar in a negative way," Adamson said.
In a letter Adamson sent to senators urging to vote against the cut, he said that taking from the fund would "jeopardize $15 to $20 billion of private investment in pollution-free energy generation and domestic manufacturing."
On a positive note for the solar industry, Adamson said the Treasury Grant Program, which is due to expire at the end of this year, has a good chance of being extended. The Treasury Grant Program is a cash grant that may be taken in lieu of the federal business energy investment tax credit (ITC), providing a 30 percent incentive to property that is part of a qualified facility, fuel cell property, solar property, or small wind property.
"That’s been our top issue in our lobbying from an installer to a developer to a manufacturer because of the support it provides, and it has bi-partisan support. If Congress passes some kind of an energy tax bill, we’ll be able to get the energy grant bill extended."
No comments:
Post a Comment