Tax Credits Keep The Lights On for Alternative Energy Companies

by | Sep 2, 2008

The Oregonian has an interesting piece on the solar business and how important tax credits are to the burgeoning industry.

According to the story, Portland’s Tanner Creek Energy faces a module shortage and record-high prices as they rush to erect solar systems before the 30 percent federal tax credit for solar-system owners expires at year’s end. Solar advocates say such subsidies are crucial until new technology and mass manufacturing reduce costs.

Faced with the loss of these tax credits, many in the solar industry fear a crippling slowdown right as momentum is rising.

On the other hand, Tim McCabe, director of the Oregon Economic and Community Development Department, is unfazed by predictions of a panel surplus and slowdown.

“The interest level in Oregon, with our business-energy tax credits, is extremely high with solar manufacturers right now,” McCabe says.