Bailout bill passed by Congress, includes solar tax credits; First Solar, Suntech stocks drop

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

Congress has passed the Emergency Economic Stabilization Act of 2008 with the support of senators Obama and McCain. The news is welcomed by the solar industry but unusually was met by traders with a plunge in the value of solar stocks.

While most will focus on the financial implications of the bailout bill, the solar industry can finally plan ahead with the knowledge that the American government will continue to substantially support the sector for the next eight years. The package includes extension of many tax measures, such as an eight-year extension of the investment tax credit (ITC) for solar energy through 2016 and a two-year extension of the R&D tax credit through 2009.

The R&D tax credit expired on December 31, 2007 and the solar energy ITC was set to expire at the end of this year.

Victoria Hadfield, president of SEMI North America, commented, “The extension of critical tax measures will have a significant impact on the economy through the creation of many new highly skilled positions and ensuring a continued U.S. leadership position for technological innovation. SEMI commends the Congress for their commitment to basic research and to promoting a solar energy industry in the United States.”

In a recent study released by Navigant Consulting Inc., researchers estimated that extending the solar ITC for a full eight years could support 1.2 million employment opportunities, including 440,000 permanent jobs. In addition to the creation of jobs, the report estimates $232 billion of investment in the solar energy industry in the United States during this timeframe.  

The passing of the bill marks an historic day for the development of the solar industry and is welcome news after recent reductions in the German feed-in tariff and the 500MW cap put on the Spanish market last week.

You can see the results at the Congress website here and the entry in the Library of Congress here

Unusually the news led to a sell off of many ‘blue-chip’ solar stocks including First Solar, Suntech and Sunpower, raising suspicion of increased short-selling practices on Wall Street. Barrons Blog tracks the fall of leading solar stocks after the bill was passed by Congress here.

— David Owen

25 May 2022
Transforming the Canadian energy market. Solar & Storage Canada will focus on fostering and expanding the solar and energy storage market in Canada. Co-located with f-cell Canada.
14 June 2022
Join us in Napa to unlock the key to reliable PV module supply to the U.S. market in 2022 & 2023. We'll also be gathering the main players in the US solar market for some wine tasting!
19 July 2022
As New South Wales is gearing up to become a renewable energy superpower, an exciting clean energy event is coming to Sydney. Energy Next is a free-to-attend industry event focusing on the latest renewable energy and energy management technologies, which will be held from 19-20 July 2022 at the ICC Sydney in Darling Harbour. Organised by the same people behind the country’s largest clean energy event, All-Energy Australia, Energy Next will bring a quality exhibition and technical session series to NSW. Energy Next will also host the Clean Energy Council’s Solar Masterclass with a program developed for solar designers and installers. Across two days, Energy Next will provide an extensive exhibition, workshops and networking opportunities for those working in the renewable energy industry to meet with leading suppliers, discover the latest technologies and gain an understanding of how to successfully launch new clean energy projects.
23 August 2022
Intersolar South America, South America’s largest exhibition and conference for the solar industry, takes place at the Expo Center Norte in São Paulo, Brazil, on August 23–25, 2022, and has a focus on the areas of photovoltaics, PV production and solar thermal technologies. At the accompanying Intersolar South America Conference, renowned experts shed light on hot topics in the solar industry. In 2021 – despite the Covid-19 pandemic – Intersolar South America welcomed more than 28,000 visitors and over 1,000 conference attendees over 3 days. 200+ providers showcased their products. Combining local and international expertise, Intersolar South America brings together the PV and solar thermal sector to discuss the current status and strategic trends for Latin American PV markets, as well as technology innovations and new business opportunities. Overall, distributed generation is still driving momentum in the Brazilian market.
6 September 2022
Intersolar Mexico sits at the cross-section of photovoltaics, solar heating & cooling technologies, and energy storage. The event serves as the industry’s go-to source for invaluable technology trends and premier B2B contacts in the promising Mexican solar market. From September 6–8, 2022 Intersolar Mexico together with the co-located The GREEN Expo® and Aquatech Mexico will take place in Centro Citibanamex, Mexico City.
19 September 2022
RE+ 2022 is the umbrella event that includes SPI, ESI, RE+ Power, and RE+ Infrastructure. As North America's largest renewable energy event, it's a catalyst for industry innovation that's supercharging business growth in the clean energy economy.

Read Next

May 18, 2022
Powering electrolysers with renewables generation that would otherwise be curtailed could be an effective strategy for producing green hydrogen in the coming years until the H2 sector benefits from further cost declines, it was suggested during a panel discussion.
May 18, 2022
The UN secretary-general, António Guterres, has issued a stark warning concerning the “dismal litany of humanity’s failure to tackle climate disruption” in an speech in which he set out “five critical actions to jumpstart the renewable energy transition”.
May 18, 2022
Shoals Technologies has become the latest solar manufacturer to adjust its guidance for the year, blaming an “increasingly challenging environment” caused by the US AD/CVD investigation.
May 18, 2022
LONGi Solar is planning to develop a 20GW module assembly facility in Wuhu City, Anhui Province after signing a cooperation agreement with local authorities.
May 17, 2022
German utility giant RWE has issued a green bond with a volume of €2 billion (US$2.1 billion), the proceeds of which will be used to pursue development of solar and wind projects.
May 17, 2022
A bipartisan group of US governors have pressured the President Joe Biden and Gina Raimondo to expedite the anti-dumping circumvention investigation (AD/CVD).

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 14, 2022
Napa, USA
Solar Media Events
October 4, 2022
New York, USA