Solar tax credits jeopardized by financial crisis, end of congressional session

While both houses of Congress agree that tax credits for renewable energy industries should be extended, the Senate and House versions of the tax bill differ in how to pay for the plan.  Unless the impasse can be breached this week, the measure is likely to wilt on the vine.  Congress is already busy working overtime on relieving the financial system.   Without tax subsidies, solar energy can't compete on price against traditional sources.

"The AP report notes that lawmakers on both sides of the Capitol 'stressed that the tax relief bill would create tens of thousands of jobs and contribute to the nation's energy independence. House Democrats 'insisted that more of the package, totaling $138 billion in House bills, be paid for so as not to increase the deficit. Senate Republicans, averse to new taxes, said any changes in the Senate-passed tax bill would kill the entire package.'"

"'It would take us in exactly the wrong direction as a country, especially with respect to climate change,' said Peter Darbee, chief executive officer of Pacific Gas and Electric Co. The utility has signed contracts with several developers of major solar power plants and has repeatedly warned that some of the projects will fall through without the tax credits. The company is counting on those projects to meet a looming state deadline to increase its use of renewable power."

Selected solar stocks since Tuesday's  U.S. Senate vote approving the extension of solar tax credits for another eight years.