Sustainable IT | Ted Samson » Akeena Solar CEO weighs in on energy bill

December 07, 2007 | Comments: (0)

Akeena Solar CEO weighs in on energy bill

TAGS: Solar power

Following is an e-mail I just received penned by Barry Cinnamon, the
CEO of Akeena Solar. In it, he voices his support for the energy bill that Congress is in the process of weighing. The bill, as approved by the House of Representatives, included the extension of two solar tax credits and increased the annual credit cap from $2,000 to $4,000.

Although Cinnamon, of course, has a clear bias here, I thought his letter was worth sharing. Moreover, the progress of the energy bill should of interest to both citizens and organizations that are contemplating investing in solar energy.

What a difference 24 hours make!

The strongest solar bill ever introduced in Congress is hanging in the balance. This week the House passed an energy bill that included the extension of two necessary solar tax credits and increased the annual credit cap from $2,000 to $4,000. 24 hours later, the Senate concluded an administrative cloture vote and the bill failed to move forward 53 to 42. The Senate now will review, rewrite and present their version of the energy bill back to the House in hopes of moving it into law. This is Congress' chance to get the energy bill right and finally move forward with strong support of clean renewable energy sources.

It's astonishing that solar energy—America's most abundant renewable resource—has to compete with oil for government support. It's also clear that with oil hovering around $90, and recently breaking $100 a barrel, oil companies are not having a problem competing (especially with the big three oil companies reported profits of $72 billion in the fourth quarter of 2006 alone).

With about two-thirds of $21 billion tax package in the bill on the major oil companies, the Energy Bill provides the opportunity for Congress to put its money where its mouth is and turn towards renewable energy sources such as solar power. Keeping the solar investment tax credits in the bill allows the outdated oil and gas subsidies to now be invested in what is right and necessary --supporting clean renewable energy and advancement in technology and initiatives.

The extension of solar tax credits -- eight-year extension of the 30 percent investment tax credit for businesses and six-year extension of the 30 percent investment tax credit for residential solar systems -- are essential in the development and progress of both business and residential solar investments.

Additionally, with the proposed increase in the residential cap from $2,000 to $4,000, the payback for a typical California home will be reduced by two years. And if the residential cap were fully removed, paybacks for solar customers could be reduced to as low as five years.

With the right kinds of programs in place, an estimated 50 percent of all new electricity in the U.S. could be generated by solar power within eight years. The Senate has the opportunity -- and quite frankly, an obligation to their constituents throughout the country -- to bring solar to its rightful place as a viable alternative energy source for every American.

Best Regards,
Barry Cinnamon
CEO, Akeena Solar

Ted Samson is a senior analyst at InfoWorld and writer of the Sustainable IT blog. Subscribe to his free weekly Green Tech newsletter.

Posted by Ted Samson on December 7, 2007 01:07 PM

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