ALERT
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9/26/03: FEDERAL TAX CREDIT ALERT LETTER - PLEASE SEND
A LETTER TO SEIA ON YOUR LETTERHEAD TO:
September 27, 2003
The Honorable Bill Thomas, Chairman
House Committee on Ways and Means
Washington, DC 20510
VIA FACSIMILE: (202) 225 - 2610
Dear Chairman Thomas:
I write you as a concerned member of the solar industry.
(inserting here details about your business, especially
any projects, employment, or facilities within Thomas’
district, and emphasizing the upside – growth, positive
revenues, etc.) The California solar energy industry represents
well over 4000 jobs in the state. We are excited about
the prospects for our industry to contribute to domestic
energy security, to improve the quality of our environment,
and to relieve both constrained energy supplies and the
national electrical grid, and we feel that the energy
bill will help us achieve these goals.
We would like to thank you for your longstanding leadership
in this area. We truly appreciate your leadership role
in both the early stages of the Investment Tax Credit,
and of your more recent efforts for the 15% residential
tax credit for home solar systems. It is highly important
to us that this measure persist in the final bill. It
is a real step forward for our industry, both as a reinforcement
of state incentives and as a way to "tip the scales"
for those interested in solar systems.
California is "ahead of the curve" compared
to the rest of the nation in this regard. As cost declines
and incentives intersect rising energy prices, some businesses
and homes can experience a compelling payback on solar
energy systems. Our growth rate as an industry in the
state is robust, but we’re coming from behind, as
it were.
Our most central and critical existing Federal incentive,
of course, is the permanent 10% investment tax credit.
Solar technologies have come down steadily in price over
the last 20 years, and are now a compelling investment
for many businesses. (this could be a place to mention
any particularly compelling projects which you have completed.)
Upfront investment is the most challenging economic factor
in solar system purchases; the Federal ITC tips the balance
for many businesses, and the maintenance of this credits’
permanent status is absolutely critical to the functioning
of the industry.
As a matter of fact, this incentive could be the most
effective lever for any more aggressive attempt to promote
further solar investment. A temporary doubling of this
incentive to 20% (again, without threatening its permanency,)
would be an ideal market signal to spur further jumps
in manufacturing capacity, employment, and clean energy
output.
The Production Tax Credit is another possible means of
promoting solar and reducing end-user costs. Of course,
it does currently appear that the "power sale"
structure of the PTC is targeted largely towards large,
centralized renewable power plants. Provided that the
Investment Tax Credit is still in effect, this incentive
could serve as a major spur to building new Concentrating
Solar Power plants like the 354 MW in California.
However, its applicability is more limited for photovoltaic
devices. The largest US photovoltaic installations are
just breaking the 1 MW ceiling, and tend to produce power
for use on-site. Accordingly, there will be some difficulties
(and costs) associated with monitoring the output of customer-sited
photovoltaics, not to mention establishing an acceptable
legal structure for using the credit. The effective value
of this credit is also lower than that of the ITC.
Thank you again for your leadership on these issues. We
hope to continue our growth in the future, and to continue
our contributions to our nations’ environment, electrical
system, and economy.
Sincerely,
[Click here and type your name]
[Click here and type job title]
Thank
you in advance for your efforts!
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