Grant Treasury

granttreasury.com

Will Green Technologies Die If the Treasury Grant Program Expires?

This is a topic of hot debate as the December 31st expiration date for the program rapidly approaches.
The Treasury Grant Program was created under The American Recovery and Reinvestment Act of 2009
to help commercial solar property owners close the gap between the money they need and the money
available from private tax equity investors. Owners can choose to recover up to 30% of their costs to
build solar projects instead of taking the solar Investment Tax Credit. The grants have provided $5.5
billion of support to the solar industry and an additional $15 billion to the wind industry.
The Treasury Grant Program rules require construction on projects begin before December 31, 2010
and be completed by December 31, 2016. California, feeling the pressure of the impending deadline to
begin construction before the end of the year, is caught up in a growing frenzy to approve potential
solar projects. There is even speculation about whether some of the projects being approved are truly
feasible.
Renewable energy companies are sounding the alarm, cautioning Congress that more than 100,000
solar and wind jobs will be lost if the program is not renewed. Additionally, solar projects which are
expected to come online and provide 2,000 megawatts of solar energy could be affected if the grants
are not extended. This would reduce the amount of solar energy that can be provided by 1200
megawatts. Extending the program for an additional year would provide enough solar energy to power
28,000 homes. However, these warnings may be landing on deaf ears.
The battle to renew the Treasury Grant Program has been difficult. Initially, Senate Finance Committee
Chairman, Max Baucus, lost his bid for a one-year extension to the grant program. Additionally, the
next version of President Obama's tax agreement didn't even include a provision to extend the program.
However, the most recent proposal which has been approved by the Senate does provide for an
extension. Senators are urging Republicans to renew the Treasury Grant Program.
The real question is whether solar and wind technologies can survive without the monetary subsidies
and tax credits that the Treasury Grant Program currently provides. There is much debate about the
answer to this question. Even the CEOs of the various solar and wind companies are not in agreement.
While some believe the industry will suffer a severe financial blow that they cannot overcome, others
believe that financing beyond the United States could be the answer to their continuing success in
developing clean technologies. There may be a need to reach out to other countries interested in
renewable energy to sustain growth here in the United States. One thing everyone agrees on is that until
the government implements long-term monetary support and solid policies for developing clean energy
technologies, their future is uncertain.
granttreasury.com