The immediate future for First Solar (FSLR), SunPower (SPWR) and other solar stocks depends to some extent on whether US Investment Tax Credits are extended for solar energy. New York Times columnist Thomas Friedman is on the case:
That bill is H.R. 6049 — “The Renewable Energy and Job Creation Act of 2008,” which extends for another eight years the investment tax credit for installing solar energy…
These critical tax credits for renewables are set to expire at the end of this fiscal year and, if they do, it will mean thousands of jobs lost and billions of dollars of investments not made. “Already clean energy projects in the U.S. are being put on hold,” said Rhone Resch, president of the Solar Energy Industries Association.
The more attention the ITCs receive by the media, the more pressure Congress will have to pass them. How many politicians, in an election year no less, will say investing in renewable energy (when oil is $140/barrel) is not a good idea? Here’s what Friedman suggests the next President proposes for an energy policy:
‘Oil is poisoning our climate and our geopolitics, and here is how we’re going to break our addiction: We’re going to set a floor price of $4.50 a gallon for gasoline and $100 a barrel for oil. And that floor price is going to trigger massive investments in renewable energy — particularly wind, solar panels and solar thermal…
Business Insider Emails & Alerts
Site highlights each day to your inbox.