Good News for the Solar Power Industry!
New legislation has been proposed to
extend the Energy Policy Act of 2005 until 2016!! You may be asking what
does this have to do with me?? Well, we understand that the decision to
go Solar can be tough but with this new legislation, the incentives and
benefits to go Solar are unbelievable. As the popularity of renewable
energy continues to illuminate all corners of the earth, the growth and
demand for solar systems is exponential. Please see below for details on
HR 550 outlining the awesome benefits for installing Solar in your home and/or business. This is a gigantic step in the renewable energy revolution and we are very excited that we are here to keep you informed and help you make the most educated decision for your energy needs. With that in mind, we all must be proactive in the process and are urging you to contact your House and Senate leaders asking them to support HR 550.
Colorado elected officials:
US Rep. John T. Salazar 970.252.1012 700 Main Ave. Ste F Durango, CO 81301
US Sen. Ken Salazar 303.455.7600 2300 15th St. Ste. 450, Denver, CO 80202
US Sen. Wayne Allard 970.375.6311 954 E. 2nd Ave. Ste 107 Durango, CO 81301
Please stay tuned! We will continue to keep you posted of any updates and/or changes in HR 550 and the rising popularity in the Solar industry.
The Securing America’s Energy Independence Act (H.R. 550)
Background
The Energy Policy Act of 2005 created a new commercial and residential investment tax credit (ITC) for fuel cells and solar energy systems that applies from January 1, 2006 through December 31, 2007. The credit was extended for one additional year in December 2006. The new tax credit is working and has helped stimulate market growth, but its limited size and duration has restricted manufacturing investment, which is critical to drive down future costs. In response, Congressmen Michael McNulty (D-NY) and Dave Camp (R-MI) have introduced the Securing America’s Energy Independence Act (H.R. 550), an 8-year extension of the ITC. The estimated impact of these bills, by the Joint Committee on Taxation, was $408 million over ten years.
Key Details of the Bill
• Extends the ITC for all residential and commercial solar and fuel cell equipment for 8 additional years (with the commercial solar ITC reverting back to 10% in 2017).
• Modifies the residential and commercial tax credit for photovoltaics to $1,500 per half kilowatt.
• Removes the 30% cap for commercial photovoltaic installations and the $2,000 cap on residential photovoltaic installations.
• Provides AMT (alternative minimum tax) relief for fuel cells and solar.
• Provides 3-year accelerated depreciation for commercial solar and fuel cell projects.
Why Support the Securing America’s Energy Independence Act
• If enacted, these changes would apply to all systems placed in service retroactive to January 1, 2007.
• Energy Security. Solar and fuel cells help to stabilize the grid, provide clean, reliable power, and reduce the impact of natural disasters or terrorist acts. Producing these home grown technologies in the U.S. will reduce our dependence on foreign sources of energy, while at the same time lowering the cost of energy to consumers.
• Reduction in the use of high cost natural gas can be best achieved with expanded use of solar and some fuel cell generation technologies. In most parts of the US, peak electric loads occur when solar electricity is near optimal efficiency (9 AM – 6 PM). Those loads are almost exclusively served by central station gas generation, often the least efficient gas generation. An 8-year extension of the ITC will displace over 4 trillion cubic feet of natural gas and save consumers over $32 billion.
• Job creation. Fuel cells and solar systems require high-tech manufacturing facilities and produce well paying, high-quality jobs. Extending the tax credit will create an estimated 55,000 new jobs in the solar industry and over $45 billion in economic investment.
• Clean Energy. Solar energy is the cleanest of all renewable energy sources, producing electricity and thermal energy with zero emissions, no waste byproducts and no water use. Fuel cells can provide zero emissions energy and can be run from renewable energy resources.
Why an 8-Year Extension is Critical:
• Lead Time for Development. Similar to other emerging energy
technologies such as clean coal and nuclear, large-scale concentrating solar power (CSP) plants and new solar and fuel cell manufacturing plants require long lead times that far exceed the 2-year time period remaining from the 2005 energy bill and 2006 extenders act. Development of a CSP plant can take 3-6 years, while new PV and fuel cell manufacturing facilities require 3-5 years to be completed.
• Financing new solar and fuel cell projects is more complex than conventional power plants because of the unfamiliarity of the lending industry with the technology. On average, financing can take an additional 12
months for project development. Political certainty – in the form of a
longer term for the ITC – is needed to
help reduce the cost of capital for these projects.
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Download/View SEIA's summary of The Securing America’s Energy Independence Act (H.R. 550). 
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