[The Vector] Expected Impact of Energy Provision Extensions: What Next?

What can the U.S. renewable energy world expect in 2011?

As everyone knows, President Obama signed the bill at the end of 2010 extending a number of energy provisions through 2011, including the U.S. Tax Grant Program (TGP) 1603 – usually referred to as Section 1603. Renewable energy was given somewhat of a gift with the extension of the provisions, but in the big picture, one year is short-term, and future uncertainty is not a grand gift. An energy plan, clear policy and long-term provisions (i.e. more certainty) is what businesses, investors and users want and need. The key is consistency and visibility at the Federal but also State level.

Not to sound too negative or rain on anyone’s parade, let’s look at the impact that 1603 had on energy in 2010 and what to expect in 2011.

The chart here, courtesy of the U.S. Department of Treasury, illustrates the 2009-2010 awards and percentage break-down within the energy segment. Wind was a stand-out, with 84.1% of awards granted.  Interestingly, the solar industry, which had only 7.5% of the grants, said that its industry created jobs and opportunity in all 50 states for construction workers, electricians, plumbers, contractors that have struggled during this difficult economic climate. The extension “will help the solar industry remain one of the fastest growing industries in America,” said Rhone Resch the CEO of the Solar Energy Industries Association (SEIA) in a statement.

(Continued soon.)