301 Moved Permanently
As the U.S. continues its climb out of economic difficulty, the solar energy industry continues its steady ascent. We have many readers of this publication to thank for that phenomenal growth.
The solar sector is helping to turn the tide, as our industry brings a bright beam of illumination to a somewhat dreary and sluggish economy. Over the last five years, the amount of solar powering U.S. homes, businesses and military bases has grown by more than 480%, from 1.1 GW to more than 6.4 GW today. The industry now employs more than 119,000 workers throughout the country - a 13.2% growth over 2011’s total (and double the number in 2009).
Many of the 5,600 companies that make up America’s solar energy industry are small businesses, and they are located in every state in the union.
As solar plays an increasingly significant role in our nation’s energy mix, policy certainty will help attract significant new private investment, enable sustained growth of a robust cleantech sector, create thousands of new quality jobs and improve the reliability of the electric grid, all while reducing air pollution.
Our industry has benefited from the very public support of President Barack Obama’s administration over the past four years. During his inaugural address and his State of the Union speech, Obama articulated again his commitment to renewable energy.
We appreciate President Obama’s support of wider deployment of solar power and applaud the president for emphasizing that a transition to sustainable energy sources is vital.
In Washington, D.C., the Solar Energy Industries Association (SEIA) has a number of critical priorities at the federal level that we are focusing our energies on this year. We are at the table - on Capitol Hill, at federal agencies and at the White House - working with policymakers, partners, our member companies and other stakeholders to further our industry’s growth and contribution to the U.S. economy.
Current needs
Here are some of the significant federal policy initiatives that SEIA will be working on this year:
Investment tax credit (ITC). SEIA’s key federal legislative focus this year is protecting the solar investment tax credit (ITC), which is due to expire in 2016. As an industry, we must underscore the tremendous progress we have made due in large part to the ITC. We will work to highlight the effectiveness of the ITC and its critical role in bringing down prices and boosting solar deployment.
“Commence construction” qualification. In addition, SEIA is looking for opportunities to make the ITC work better for solar companies.
In particular, a change to the ITC standard allowing solar projects to qualify when they “commence construction” would make the ITC more effective and provide needed certainty for project developers. A similar change was made earlier this year for technologies that take the production tax credit.
Tax reform. If corporate tax reform is on the congressional agenda in 2013, SEIA will participate in that conversation. However, it is not clear - as of this writing - whether comprehensive tax reform is going to be addressed this year.
Finance mechanisms. SEIA is involved in ongoing conversations about other financial mechanisms that aid the flow of capital for solar projects. Such ideas include accelerated depreciation for tax purposes; making solar property eligible for inclusion in master limited partnerships and real estate investment trusts; and allowing solar to qualify as a public welfare investment, which would make solar a more attractive investment to lenders.
Public lands. Similarly, we are paying close attention to various legislative proposals that would affect when, where and how much solar development is permitted on public lands.
FERC issues. On the regulatory front, SEIA’s efforts at the Federal Energy Regulatory Commission (FERC) continue apace. We are actively advocating for a change to the interconnection rules for wholesale distributed generation projects (1 MW to 20 MW).
If adopted, the new rules would allow more solar projects to move forward under “fast track” procedures that eliminate or reduce the need to conduct lengthy and costly interconnection studies. In February, FERC released a proposed rule that would codify many of the changes SEIA requested.
Industry codes and standards. SEIA is stepping up its involvement in codes and standards work across the industry by monitoring and participating in the development of product standards and building codes relevant to the market. Additionally, SEIA routinely collaborates with other stakeholders to address relevant codes and standards.
Trade. SEIA continues to be active in international trade matters, developing alternatives to trade litigation. Free trade and open markets encourage deployment of solar power worldwide. SEIA recognizes that growth in the global supply chain benefits both American manufacturers and consumers.
We are paying close attention to legislative proposals that would affect where solar is permitted on public lands.
Therefore, the organization is working to inform member companies, the public and policymakers about the advantages of international trade in solar energy, while advocating for a fair and transparent global trading system.
Finally, as of this writing, Congress was facing important decisions about the country’s fiscal condition: The sequestration cuts were scheduled to take effect on March 1 if Congress cannot reach deficit-reduction milestones, and the legislation that funds the federal government expires at the end of February. SEIA is working to prevent sequestration cuts from affecting the U.S. Department of the Treasury’s Section 1603 program.
Overall, 2013 is shaping up to be another exciting, busy year for solar. We appreciate your efforts over the past years and look forward to working with you to enact solar-friendly policies in Washington. We ask that you work with SEIA and join our Solar Power Advocacy Network (SPAN).
SPAN provides state and federal policy updates and action notices. Our team brings you the latest information on critical solar votes, and we make it easy for you to contact your elected officials and let them know that you support strong solar policies.
We urge industry readers to help make sure your elected officials make solar energy a priority for the U.S. You can make a difference for our energy future by making your voice heard. S
Industry At Large: Federal Policy
SEIA’s President Outlines Top Solar Federal Policy Priorities For 2013
By Rhone Resch
The state of solar in the U.S. is strong, but more work remains to be done in Washington.