The future of renewable energy may very well hang in the balance of tax breaks, as a grid-locked Congress struggles to extend tax benefits that encourage renewable energy development.
Financing remains the biggest challenge for renewable developers. The tax equity market all but dried up after the 2008 financial crisis. A lack of private capital flowing into clean energy development, coupled with an economy struggling to recover and uncertain long-term energy policy, has the ability to cripple the industry, or at the very least, stop many of the large-scale energy companies from developing. Without quick action, many in the industry fear for their survival.
ARRA funding, known in Washington as “stimulus money,” is getting ready to close out many of the renewable energy tax benefits at the end of this year. American clean energy jobs are a real stake in the current congressional debate. It’s all about jobs and who can claim the most credit in November for creating those jobs. However, fighting over how to pay for programs and finding a piece of legislation that can actually pass, has members of Congress frustrated and scratching their heads for a solution.
This could be very bad news for Nevada, commonly referred to as the Saudi Arabia of Sun. Not only could it affect solar in our state, but wind energy also is just as vulnerable. Both the Solar Energy Industry Association (SEIA) and the American Wind Energy Association (AWEA) have teamed together to lobby Congress on behalf of these vital tax breaks. R&R Partners represents the largest thermal solar company in the United States, BrightSource Energy, who has been actively engaged in the debate. Nevada is lucky to have a unified congressional delegation that works very hard on behalf of the renewable energy industry. But they alone cannot do it all.
We need to get to a place in Washington where things start working again. Partisan gridlock is literally killing us as a nation. If the recent oil spill has taught us anything, we as a country need to stop gambling with our energy future. We live in a world that is dependent on fossil fuels and we must make the necessary changes in our energy policy to include all forms of energy, especially renewable energy, into a comprehensive mix that is balanced and fair to all developers. This will play out nationally once the Senate takes up an Energy Bill, which is expected to happen between now and the August congressional recess. It’s now or never for renewable energy tax breaks, so stay tuned for a long, hot, frustrating summer in D.C. politics.
