Solar Industry Upbeat in Poor Economy

October 20th, 2008

Even though the economy certainly isn’t ripe for those that would normally buy solar panels, the attendees at the Solar Power International 2008 were still in a good mood.

“I think there’s a flight to quality and we believe there’s a flight to solar because of that,” said Tom Werner, the CEO of California-based solar panel manufacturer and installer SunPower. He noted that big solar projects over the past three or four years have created a track record of delivering expected financial returns.

“Now having said that…the credit markets are different and more measured. Banks are studying things more–the risk profiles and the balance sheets of companies,” Werner said.

The solar industry got some help in the Bailout Bill passed a couple weeks back as well as did other green sectors.

• One-year extension for wind and refined coal energy tax credits. A production credit for electricity produced from renewable marine energy sources (meaning through wave power and river power, or by exploiting the differences in ocean temperature). Energy credits for “small wind properties,” geothermal heat pump systems, and energy-efficient residential properties.

• New renewable-energy bonds. Up to $800 billion in energy bonds may be offered to the public, with a third from “public power providers,” a third from governments, and the remainder from “cooperative electric companies.”

• Tax credits for “cellulosic biofuels” and for “carbon dioxide sequestration.” An extension of an alternative fuel credit. Tax credits for “new qualified plug-in electric-drive motor vehicles.” Bicycle commuters get a nod, as do regulations aimed at “residential top-loading clothes washers.”

With the election just a couple weeks away we can all hope that some of the things discussed thus far will come to fruition during the next term. Especially some of the talk about alternative energy vehicles, as well as help to these businesses in the group health insurance department.