Earth Equity News

Will Tight Credit Offset Huge Boost to Solar Industry from Tax Credit Extension? By Matt Nauman, San Jose Mercury News, October 11, 2008. "In what promises to be a huge boost for Silicon Valley's solar industry, the extension of the solar tax credit bundled into the recent $700 billion financial rescue package will create thousands of new clean-tech jobs while slashing the cost of solar panels for homeowners and businesses, industry leaders say. Companies such as San Jose's SunPower had lobbied Washington for nearly a year to get the measure approved. Now that the credit has been extended for eight years, SunPower has a much clearer view of what the world will look like for solar energy well into the next decade. 'We may not be quite at solar nirvana, but we're going to be getting close,' said Julie Blunden, SunPower's vice president of public policy and corporate communications. But Blunden and others warned that the crisis on Wall Street could threaten the industry's potential gains. Companies often need credit to pay for solar installations, and the current credit crunch has severely limited its availability. Tight credit and fears of a deep recession also could keep homeowners from taking advantage of the removal of a tax credit cap that lowers the cost of solar panels by thousands of dollars. SolarTech, an initiative of the Silicon Valley Leadership Group that advocates for the solar industry, had predicted huge gains deriving from tax-credit extension but is now merely 'cautiously optimistic,' said Doug Payne, its director of business operations. Still, most remain bullish on solar because of its potential to replace traditional sources of electricity generation, its growing appeal to businesses and homeowners, and its ability to generate green jobs in Silicon Valley and elsewhere."