USA’s grand solar opportunity depends on USA Senate

One factor could snarl that time line: the expiration of federal incentives, specifically the Treasury Dept.’s cash grant program, which currently covers 30% of a project’s costs, as long as construction has begun by the end of 2010. SEIA and other groups are pushing to have the qualifying construction start date extended by two years, to the end of 2012…….

Members of the US Senate Finance Committee didn’t return calls asking when they would vote on extending the program…….

Solar power: Brighter long-term investment outlook, The Economic Times, 29 Aug 2010, With utilities adopting standards to increase the amount of solargenerated electricity in coming years, the US could bolster its presence in the global solar-power market. The quickening growth pace could present attractive opportunities for investors,according to some professionals.
At the end of 2009, the US ranked fourth in total solar capacity, with 2.09 gigawatts installed, behind Germany with 9.79Gw, Spain with 4.01Gw, and Japan with 2.68Gw, according to Bloomberg New Energy Finance. With the US installed capacity growing at a faster pace than that of the international market, the country may be on track to become a more dominant market by 2014, according to Larry Sherwood, an analyst at the Interstate Renewable Energy Council.

Some 23Gw of solar capacity are under development in the US, enough to provide electricity for 4.4 million households, according to the Solar Energy Industries Assn. Solar demand in the US is expected to grow 75% in 2011, compared with 2010. About 1.5Gw to 2.0Gw of capacity—1 .36Gw in California alone—is scheduled to be installed next year. …..
One factor could snarl that time line: the expiration of federal incentives, specifically the Treasury Dept.’s cash grant program, which currently covers 30% of a project’s costs, as long as construction has begun by the end of 2010. SEIA and other groups are pushing to have the qualifying construction start date extended by two years, to the end of 2012.

Members of the US Senate Finance Committee didn’t return calls asking when they would vote on extending the program…….
the main reason the US solar market lags Europe’s is that the federal government has consistently failed to commit to a longterm policy offering financial incentives to power providers, without which solar can’t yet compete with such cheaper sources of electric generation as coal and natural gas.

While Europe is moving toward smaller rooftop installation, utility-scale projects are fast becoming the focus in the US and are the most likely way for the US to catch up with the leading solar markets.