Is Solar Power Back On?

Not too long ago, the Feds decided that they wouldn’t be accepting new (the already-submitted applications remained in play) applications for solar power plants. These solar power plants are being proposed in desert areas across the Southwest and West as ways to provide renewable energy.

The reason for the halt to new applications? The government wants to study the environmental impact. (But the environmental impact of offshore drilling is already widely known, so we’ll just go ahead with that. Because it doesn’t matter whether the impact is harmful. We just have to know what it is.)

Is Solar Power Back On?
Photo: Rob__, Creative Commons, Flickr

Predictions were made that solar power was likely to die out — before it really had a chance. Conspiracy theorists wondered if Big Oil was secretly behind the decision. And there was a general outcry from several groups. So the Bush Administration decided to reverse course. And new solar plant applications are being accepted again. (First Solar — FSLR — is solidly up right now, BTW.)

But this may not be enough to get the solar power into the realm of the cost-efficient. In order to help stimulate development in renewable energy, including solar power, investment tax credits have been in the offing. Morgan Stanley (MS) and Google (GOOG) are just two of the companies that have fronted money for solar power. And these are the investments that are making solar power viable as we work on developing the technology to make solar power truly competitive. Here is what the Green Wombat reports about the status of these tax credits:

Congress has failed several times in recent months to extend the tax credit, which expires at the end of the year. If only solar energy execs and their supporters in Washington could exert the same influence on recalcitrant Republicans as they have on the BLM.

So, even though solar power plants are back on, it may not be enough to keep the ball rolling. We’re perfectly happy to maintain the status quo on tax breaks and subsidies for Big Oil, so why are we having so much trouble doing the same for solar power? In the long run, renewable energy will benefit us more.

Disclosure: I do not invest in any of the companies above.

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