The news around Washington D.C. has not been altogether bright. The Nationals didn’t make the playoffs this year. The federal government is closed. The museums are closed. Imposing concrete barriers block you from parking in any lots managed by the National Park Service. A woman suffering from postpartum depression leads the police on a chase from the White House to the Capitol Building, where she is killed in her car. Despite all of the bad news and gridlock elsewhere in the city, the solar home tour celebrated its 23rd year in the metropolitan Washington DC area this past weekend. And if you missed it, you missed one of the bright spots in Washington, D.C. Homeowners with solar panels and solar water heating systems graciously opened their homes to visitors just to show off their solar prowess. Some of the homeowners even fed us (and our kids, thank you very much!). Human psychology plays a role in the financing of these systems. When there were more incentives, there was more of a frenzy to buy solar panels. Now that many of the incentives are no longer around, the frenzy has quieted down, but the cost of the solar systems without the incentives is now much less than it was before because of the falling cost of the modules. As one homeowner told us, he originally bought his panels ten years ago at $7.00/watt. Now a better module can cost around a dollar a watt. But what is missing is that hook that you better get on the bandwagon today. There is one major incentive that will almost certainly disappear, and that is the federal income tax credit, which ends in 2016, but you still should have time to put in your solar water heater or solar energy system before the credit expires. With the craziness in Washington, D.C., you probably should think about getting your system up and running before the solar tour next year.
Posts Tagged ‘investment tax credit’
Natural gas, Chinese manufacturing and austerity programs were the themes at a solar symposium yesterday in the Nation’s Capital. The GW Solar Institute brought together teachers, students, policymakers and the president of SolarTown to take on the subject: “Solar Energy: A Path to Energy Significance.” No one seemed to suggest that it was going to get any less dull in the solar market in the coming year, but the forecasts were few and far between as the solar market continues with its fits and starts.
I know that you may have a heck of a time trying to give up with the jargon, and your Latin may be rusty since high school. One thing if for sure: the solar industry is hoping for a minor miracle that the cash grant program will be extended. The solar energy industry is still dependent on government incentives and the cash grant is the most effective of all of government support for the solar industry. The naysayers will roll their eyes: “Handouts are for losers,” they grumble. Tell that to every other energy industry that have received generous support over the years.
The whirl of events have left even the closest market observers shaking their heads in disbelief at how much has changed in the solar industry over the past several months. The solar industry is one of the fastest growing industries in the United States. Just how much is the solar energy business growing in the US. Well, a lot if you are counting watts. If you take the second quarter of 2010, 186 megawatts was installed; 2011, 314 megawatts, or an increase of 69%. The irony is that despite this explosive growth in the solar industry and a lot more people putting solar panels on their roofs, solar companies are getting hammered. Their margins are being squeezed and they are not making much money. I am not even talking about the woes of Evergreen Solar, which filed for bankruptcy and is down 99% year-to-date. We won’t even talk about the spectacle of Solyndra, the financial problems of which may only be the least of the problems for some of the executives there. (When the FBI comes knocking on your door, they are usually not bringing gifts.) If you are or were an investor in solar energy stocks, don’t even look at your stock holdings unless you want to barf up your breakfast. But if you are a homeowner interested in a home solar panel system, you may still be smiling as prices have come way down.
Ambassador Stuart Eizenstat gave the keynote address at today’s George Washington University Solar Institute Symposium here in Washington, D.C. Eizenstat, domestic policy adviser to President Jimmy Carter, was there when Carter installed solar panels on the White House in the late 1970s, when the promise of solar seemed bright. Eizenstat recounted that the “momentum waned” and the solar panels were “dismantled by the next president.” Eizenstat laid out a powerful argument for solar: national security.