Leaders from the solar industry recently sent a letter to House Speaker Nancy Pelosi, Senate Majority Leader Harry Reid and other Congressional leaders working on the Energy Bill.
The letter states that the U.S. photovoltaic (PV) industry is on track to grow 60% in 2007 and that solar will be on par with other energy sources by 2015 if it receives continuing support, such as the investment tax credits passed in the 2005 EPACT and several initiatives on the state level.
It continues, “&key provisions for solar proposed in House and Senate versions of the energy bill pave the way for continued growth and deployment of solar energy and will stimulate continued cost reductions.”
The letter then details the provisions most important to the industry:
– Extend through 2016 the Section 48 business investment tax credit (included in both the House and Senate bills)
– Extend through 2014 the Section 25 D residential investment tax credit (included in the Senate bill)
– Remove the $2,000 cap from residential investment tax credits (included in the House bill)
– Provide Alternative Minimum Tax relief for both commercial and residential users of solar (included in the House bill)
– Eliminate public utility exemption (included in both the House and Senate bills)
The letter also states support for numerous other provisions in the House and Senate versions of the energy bill, including the following:
House H.R. 3221 Solar Provisions:
– Renewable Electricity Standard: An amendment offered by Rep. Tom Udall (D-NM) would require utilities to obtain 15% of their power portfolio from renewable sources by 2020, 4% of which could be satisfied with electricity efficiency measures.
– Long-term Federal Solar Power Purchase Agreements: Authorizes 25 year federal power purchase agreements for solar energy (current maximum duration is 10 years). (Sec. 9086)
– Strategic Solar Reserve Program: Lands under the Bureau of Land Management’s jurisdiction must be identified that can accommodate up to 25 GW of solar energy development. Provides favorable terms and conditions for permitting, leasing and site identification. (Sec. 7304) [3]
– Government and Non-Profit Solar Assistance: Authorizes the Department of Energy, subject to appropriation, to assist state, county, local government, schools, universities, airports and other qualifying entities, to provide technical assistance to increase the deployment of solar energy systems. (Sec. 9072-9075)
– Small Business Solar Assistance: Provides grants, subject to appropriation, and authorizes technical assistance to small businesses to assist them in evaluating the suitability of using solar energy. (Sec. 3005)
– The Solar Energy Research and Advancement Act of 2007: provides funds, subject to appropriations, to support the research, development, and commercial application of solar energy technologies.
– Solar Workforce Training: Provides funds, subject to appropriation, for grants for solar industry workforce training and internship programs. (Sec. 1002)
– Accelerated Depreciation for “Smart-Meters”: Allows utilities a five-year accelerated depreciation for the installation and use of smart-meters. (Sec. 12015)
Senate H.R. 6 Solar Provisions:
– Solar Innovation Manufacturing Partnerships: Establishes a Renewable Energy Innovation Manufacturing Partnership Program. The program would make awards for research, development and demonstration related to the manufacture of renewable energy technologies. (Sec. 270B)
– Federal Building PV Deployment: Requires DOE to issue regulations that requires each federal agency to increase alternative fuel use by 10 percent annually by 2015. (Sec. 262)
– Federal Facility RES: Requires to the extent that it is “economically feasible and technically practicable” that 15 percent of the federal government’s electricity use come from renewable sources by the year 2015. Also puts in place new energy management requirements for federal buildings and new energy efficiency performance standards. (Sec. 262)
– Long-term Federal Solar Power Purchase Agreements: Authorizes 50 year federal power purchase agreements for solar energy (current maximum duration is 10 years). (Sec. 262)
– Clean Energy Corridors: Calls for the designation of electric transmission corridors in any area experiencing transmission capacity constraints or congestion. (Sec. 269)
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