Hey Congress: Talk to us!

We’ve been hearing since February about the number of lost job opportunities (some 116,000) and lost investment (approx. $19 billion) that would be suffered by the PV and wind industries in the event of production and investment tax credits not being extended past the end of this year (see Navigant Consulting report here).

We’ve also been spectators at the many rounds of the Capitol Hill egg-throwing contest that have passed for debate on this very issue for most of the 110th Congress. Perhaps it’s time, now, to put some meat on the bones of that economic study, and give our Congresspersons some focus. Or, at least, ask them some pointed questions.

Let’s take a tour of the country, and see what it will mean in real terms in just a dozen states, if the ITC is not extended.

• In Arizona, one of the largest solar facilities in the world—a 280-MW concentrating solar power plant—is planned by the Spanish company Abengoa Solar. It’s expected to generate power for 70,000 homes and revenue of around $4 billion, including over $1 billion in economic benefits to Senator McCain’s state (reported on in February’s issue of Solar Citizen).
  Without an extension of the ITC, the plant will not be viable.

• In California, Pacific Gas & Electric Co. has proposed purchasing 553 MW of power from what will be the world’s largest concentrating solar facility—Solel’s trough-based system in the Mojave Desert. This represents an investment of $1.5 to $2.8 billion, an increased tax base in San Bernardino County, and construction, operation and maintenance jobs.
  Without an extension of the ITC, this project is in jeopardy or faces significant delay.

• In Colorado, a solar-electric dealer and installer is booking some $250,000 annually in gross sales.
  Without an extension of the ITC, the dealer expects to lose at least half his sales.
  

• In Michigan, a PV manufacturer has selected sites for six new facilities, which will create 1200 jobs in an economically depressed community.
  Without an extension of the ITC, the facilities may not be built.
  

• In Montana, one of the largest polysilicon plants in the world is planned for a $1-billion expansion.
  Without an extension of the ITC, the expansion will be cancelled.
  

• In New Hampshire, one of the world’s largest PV equipment manufacturers is deciding where to build its next factory.
  Without an extension of the ITC, the company will build it in Asia.
  

• In New Jersey, a start-up solar company has $50 million + in large-scale commercial projects lined up.
  Without an extension of the ITC, the company is likely to lay off its entire workforce and fold up.
  

• In New Mexico, Governor Richardson helped break ground in March for a new CSP and PV equipment manufacturing plant. At the time we reported on it (in March’s issue of Solar Citizen), the company anticipated employing 1500 people.
  Without an extension of the ITC, hiring will be limited to 350, reducing the benefit to the local economy by $400 million.

• In Pennsylvania, a solar installation company was in the process of hiring crews to work on a $300,000 project.
  Uncertainty about the ITC extension has caused the company to lose the project.
  

• In Tennessee, a company that had over half a million dollars in receipts in 2007 is experiencing a huge downturn in business.
  Without an extension of the ITC, the company expects to declare bankruptcy.
  

• In Utah, the State’s largest solar array installer reports that dozens of projects that could have been operating a year ago have been delayed because of the uncertainty of the ITC extension.
  Without an extension of the ITC, these projects are likely to be canceled completely, causing the company to reduce its staff by dozens.

• In Washington, a company is bidding on some 40 kW of grid-tied PV projects and planning 20 kW more of commercial installations.
  Without an extension of the ITC, none of these projects are expected to be built.
  

So the forecast losses in investment and jobs are not just speculative or alarmist; they are happening now or will happen in the very near future. One wonders what it is that congresspersons find so compelling about discontinuing the ITCs, that they would knowingly allow this kind of destruction and decay to take place. This is, after all, a (relatively) new industry, and new industries have historically enjoyed support from Government funds for good reasons.

We would truly like to hear from our legislators what programs or assets they feel would be threatened by the ITC extensions, and why they think they’re so much more valuable than what is, even today, being lost from our future.

We’re listening…..