Earlier this week, I was skeptical about the prospects of federal investment and production tax credits for solar and wind. These incentives which have been crucial to the white-hot growth of renewables looked set to expire at the end of the year. But Senators decided to inject the controversial bailout bill with their renewal. And this afternoon, the House approved and the President signed the bill into law.
So, renewable energy has passed the federal policy hurdle. Wind received a 1-year extension of the ~2 cent per kWh tax credit through 2009. And solar received an 8-year (through 2016) extension of their 30% of system cost investment tax credit. The federal government has done its part. Now, the question remains (more…)