Stimulus Package is Creating More Solar Interest

The passage of the United States Stimulus Package earlier this year has had its critics.  Some believe that the money earmarked for renewable energy projects like solar and wind was not a sound investment, particularly as the industries have recently lagged with lack of investment.  Many others criticized the amount of monies provided, with fears of how future generations will pay down the debt.

Personally, I’ve wondered how future generations will survive if alternative energy solutions do not get off the ground so that we can get off foreign oil and greenhouse gas emitting fuels.  Worry about the debt may be a secondary concern.

Critics aside, it appears that the Stimulus Package is creating more solar interest.  After a tough quarter from December through February, Ron Kendi of Sharp Solar remarked last week:

“I call this the green shoots period. We’re seeing new growth.”

What, exactly, is happening to revive solar growth?  How is the Stimulus Package helping?

Solar Power under construction

At the top of the list is the new willingness of banks to provide funds for solar projects.  Until recently, money was basically frozen and unavailable.  Capital is now flowing more freely.

We’ll also be seeing more small-scale solar projects with the monies provided to local governments through conservation-oriented block grants.  Municipalities can more easily invest in the renewable energy future of their communities, as a result.

Craig Mataczynski, of Renewable Energy Systems Americas, commented:

“I would characterize the situation as ‘the fog appearing as if it is starting to lift.’ [There is] talk of additional projects that people are looking to build.”

Another outcome of the Stimulus Package is the ability of the Department of Energy has to issue loan guarantees to solar manufacturers.  Last week, the DOE issued its first guarantee to Solyndra.

A Treasury grant program should also continue to spur solar energy growth.  Grants can be given based on tax credits held by the grant applicant.

The flexibility and range of options to finance solar projects will only continue to increase interest with respect to investing in the industry.  Whether as a bank, a governmental entity, or a consumer looking to install solar panels, the time is right now!

Solar Panels - a Bright Spot in the Economy?

Things may seem pretty bleak these days with massive layoffs announced at Starbucks, Microsoft and Caterpillar recently.  I tend to focus on the tidbits of positive news, which appear to be more and more infrequent.  So, imagine my surprise when I read yesterday that people are continuing to invest in renewable energy sources, like wind and solar.

For the first time ever, renewable energy sources accounted for the biggest share in the increase of the electrical capacity of the United States. What does this mean?  In short, more alternative energy projects were built than new coal-burning power plants in 2007.

And more should be on the way:

Not all communities want to go green for the sake of saving the environment.  I had coffee yesterday with the proponent of a wind project in an area of Oregon that is more interested in hunting and fishing than worrying about global warming.  But one thing that will resonate from region to region is the idea of new tax revenues and new jobs for areas hit hard by the recession.  Construction laborers, developers, electricians and more have been affected by the downturn in construction, but are easily qualified to work on renewable energy projects.

The statistics are found in a report called Electrical Power Annual 2007:

In 2007, general electrical capacity increased by 2.3%, from 4,065 million megawatt-hours in 2006 to 4,157 MWh in 2007. The total net summer capacity saw total increase of 8,673 MW. And out of that, wind power alone accounted for 5,186 MW: the largest portion of the energy increase pie graph.

Even though we still have a lot of progress to make (renewable energy only accounts for a total of 2.5 % of total electrical capacity), it is important to recognize these significant strides towards clean, green energy and future independence from foreign oil supplies.

If I had extra money to invest, this is where I would put it.  What do you think about the future of renewable energy?  Safe bet, or risky proposition?