President Obama’s Stimulus Package Gives a Boost to Clean Energy

Among the incentives, the plan will allow developers of renewable-energy projects to swap tax credits for cash grants.

The renewable-energy sector got a lift from the economic stimulus package signed Tuesday, with a fix to a crucial tax issue that had stalled projects nationwide.

Solar and wind companies said it could take several months for the legislation to get portions of the industry moving again. But some players are already gearing up for growth.

SolarCity, a Foster City, Calif., company that’s one of the nation’s largest residential solar firms, will end a hiring freeze in place since December and begin seeking more installers immediately, said Chief Executive Lyndon Rive.

“We should be adding 16 or so crews over the next few months,” Rive said. “This is a great step toward resolving our challenges.”

The American Recovery and Reinvestment Act will invest nearly $79 billion in renewable energy, energy efficiency and green transportation, according to a final tally of the legislation by the nonprofit Environment California.

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Obama Signs Stimulus Packed With Clean Energy Provisions

President Barack Obama signed the $787 billion stimulus package today, and the clean energy industry - among the biggest winners - is celebrating.

The signing ceremony was heavily loaded with solar symbolism: Mr. Obama signed the bill after touring the Denver Museum of Nature and Science, which has solar panels on its roof. He was also introduced by Blake Jones, head of Namaste Solar Electric, a Colorado company that installed solar panels on the governor’s mansion there.

“It’s an investment that will double the amount of renewable energy produced over the next three years,” said Mr. Obama, who also promised that the bill would help “transform the way we use energy.”

The text of the bill is posted by the House Appropriations Committee here. This detailed summary is particularly helpful.

The provisions include:

* A large sum for energy efficiency, including $5 billion for low-income weatherization programs; over $6 billion in grants for state and local governments; and several billion to modernize federal buildings, with a particular emphasis on energy efficiency.

* $11 billion for “smart grid” investments.

* $3.4 billion for carbon capture and sequestration demonstration projects (otherwise known as “clean coal”).

* $2 billion for research into batteries for electric cars.

* $500 million to help workers train for “green jobs.”

* A three-year extension of the “production tax credit” for wind energy (as well as a tax credit extension for biomass, geothermal, landfill gas and some hydropower projects).

* The option, available to many developers, of turning their tax credits into direct cash, with the government underwriting 30 percent of a project’s cost.

Kate Galbraith
The New York Times