| Note To GOP: Stimulus Will Help Solar |
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| Written by Marsha Johnston | |
| Wednesday, 25 February 2009 | |
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While the Republicans keep yelling that President Obama’s economic stimulus legislation is nothing but pork and will not help the U.S. economy, one of the solar industry’s most innovative capitalists told solar integrators just the opposite this week. At a web conference moderated by AltaTerra Research Network on Tuesday, SunEdison founder and former CEO Jigar Shah said, although it won’t be immediate, certain provisions in the economic stimulus legislation will most definitely improve growth prospects for the solar industry. The most "ridiculously interesting" bit of the new law, he said, is the Energy Credit Basis Reduction Rule, which eliminates the requirement that solar purchasers take the Investment Tax Credit only on the part of system cost not covered by a grant or subsidy. Now, the ability to get the 30 percent ITC on the full system cost no matter what offset has been received increases the rate of return on projects by several points, often into the high double digits. "I didn’t even know this was on the table. You get to double-dip, which is incredible. But it’s only through 2010, so it’s now or never," he said. Shah said the stimulus' $3.1 billion in block energy grants for energy efficiency and renewables should also be a good source of project revenue, but exhorted solar integrators to join their local industry association and start lobbying. "The grants can be used for just about anything, so local lobbying in this case is really critical, as there is no guarantee that solar will get a penny of it. Certain states, such as Idaho and Kentucky, will be getting the federal money soon and don’t have solar programs, but could," he said, noting that other items they should push for include city, sales and property tax exemptions for solar, net metering and better interconnection standards. Other stimulus provisions notable to solar aficionados, he said, include the 30 percent manufacturing tax credit to build more capacity and the $500 million in money for training in renewable energy. The bill is less helpful to the giant solar thermal installations, he said, as they must start construction by end of 2010 and finish by 2017 in order to get the 30 percent credit. But, he noted, "there will likely be a lot of business for those who can help them" get that construction started. Of his industry, Shah said this year would get "some growth, but 2010 will have amazing growth," noting that he has already seen PV module prices as low as $2.40 per watt for bulk orders. And of the upcoming energy bill, he said most Capitol Hill lawmakers have told him they believe a national Renewable Portfolio Standard is within reach, but that a carbon cap and trade is "no slam dunk." Comments (128)
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