Tuesday, May 25, 2010

Tax support would guarantee jobs and growth, says solar industry


The Solar Energy Industries Association said significant growth in jobs and solar capacity can be secured if the United States will maintain support in the form of tax programs for the clean energy sector.
With Washington Senator Maria Cantwell, the solar industry umbrella group said in a new study that extending critical tax policies would generate as much as 200,000 solar industry jobs and deploy 10 gigawatts of additional solar installations by 2016.

The cash grant program was designed to support renewable energy projects by replacing tax credits that companies received for each installation. Tax credits, designed to encourage investments in the manufacturing aspect of the renewables sector, were rendered useless following the economic recession which resulted in a decline in companies’ taxable income.

The grant program is set to expire by the end of 2010 and the tax credit funding allocation has already been exhausted.

“[Extending] the treasury grant program is essential to continuing our nascent economic recovery and moving to a cleaner, more distributed 21st century energy system,” said Ms. Cantwell.
“Tens of thousands of jobs hinge on continuing this successful program, including thousands of new solar jobs in Washington State in the next two years,” she added.

The association projects that without the grant program and the tax credit, 463,000 jobs will be created by 2016 in the clean energy sector, with 113,000 of this to be found in solar. But the extension of both programs is expected to produce considerably better results – 669,854 new jobs, including 161,000 direct jobs in the solar sector.

“We need to support these workers with stable, common-sense policies,” said Rhone Resch, president and chief executive of the solar association.
In terms of installed capacity, the baseline scenario without tax support would find California dominating the solar energy sector with the highest power peak at 20,000 MW. Arizona’s solar electric power capacity would peak at 3,800 MW due to the state’s widespread support for concentrating solar power.

Colorado, Florida and New Jersey would also experience significant growth in solar deployment with solar electric peaks of 1,980 MW, 2,001 MW and 2,648 MW respectively.
But again, with the extension of both the grant program and the tax credit, solar electric installations would increase dramatically. California would remain to lead all other states by reaching a solar power peak of 24,600 MW – equal to 45 percent of the national solar capacity. Arizona would continue its steady solar growth with a peak of 5,276 MW.

The states of Colorado, Connecticut, Florida, Nevada, New York, North Carolina and Oregon would all breach 1,000 MW by 2016 under favorable tax regimes, the study said.

The Solar Energy Industries Association is a national trade association representing nearly 500 solar energy companies in the United States. 


Information Provided by Donna Antonucci
Prudential Castle Point Realty
Hoboken Real Estate Monitor

201-240-6832
donnaantonucci@gmail.com
www.hobokenrealestatemonitor.com

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