Like Christmas in October

by Gary M. Kaye - Publisher, Zero Energy News

When I called Rhone Resch, the President of the Solar Energy Industries Association, shortly after the House of Representatives had approved an eight year extension of the renewable energy tax credits, his office sounded like Christmas in October. And for good reason. Solar and Wind industry representatives have been working for two years to get these tax credits extended. Ironically, a vast majority of members in both the House and Senate agreed that this was something that needed to be done. But for the better or worse part of two years they couldn't agree on a way to pay for them. Ultimately various versions had passed each chamber of Congress, but never in the same form. It took the biggest financial crisis in modern American history to get them approved, and then essentially as an afterthought.

There is plenty at stake here. First, there's the whole question of energy policy. You remember energy policy, something which our national leaders all agreed we need, included the development of renewable energy. But, as they say, "the devil was in the details". Can you imagine how, with gasoline still not all that far below four bucks a gallon and heating oi and natural gas prices still on the rise, this Congress could have gone home and not extended these credits? Every kilowatt of electricity generated by renewables takes that much pressure off fossil fuel driven plants, whether they be driven by oil, or even good old American (air polluting carbon emitting) coal.

The second part of this has to do with the economy, stupid. There are estimates that renewable energy could be one of the biggest sources of new jobs creation in the next decade. Hundreds of millions of dollars are poised to be invested in solar and wind. And all of this economic activity could have been slowed considerably had these tax credits not been extended. The mind boggles. Now, at a time when our economy is in deep trouble, at least we can look forward to substantial investment in renewables. Just as the computer industry in the 1980's saved us from the loss of heavy industry, the renewables industry stands poised to save us from the fallout of the mortgage mess. Even better incorporation of these new technologies into homes and commercial business, could help turn the real estate and housing industries back onto an upswing.

Yes, Congress did the right thing. But this was legislation by default, not the fault of the obvious necessity. Next time we just might just fall off the cliff.