The solar and wind industries are suffering, just like most industries. Unlike most industries, however, solar and wind are touted for their ability to provide new jobs that can’t be exported, as well as provide new clean energy sources.
With that in mind, it seems like a no-brainer that the stimulus plan would help steer these stumbling industries through a rough patch. Not so much, it turns out:
NY Times: Wind and solar companies have urged Congress to adopt measures that could help revive the market. But even if a favourable stimulus bill passes, nobody is predicting a swift recovery.
“Nothing Congress does in the stimulus bill can put the market back where it was in 2007 and 2008, before it was broken,” said Mr. Martin, the tax lawyer with Chadbourne & Parke. “But it can help at the margins.”
The solar and wind tax credits are structured slightly differently, but the House version of the stimulus bill would help both industries by providing more immediate tax incentives, alleviating some of their dependency on banks.
Both House and Senate would also extend an important tax credit for wind energy, called the production tax credit, for three years; previously the industry had complained of boom-and-bust cycles with the credit having to be renewed nearly every year.