Renewable energy financial forecast

by Antonio Pasolini on January 26, 2009

Good news on the solar power front as far as economics go, or so it seems. Triple Pundit has a report with a round-up of links pointing to the fact that consumers will benefit from decreasing costs involved in installaling solar power systems in their homes while manufactures might lose on the profit margin.

The removal of the $2,000 cap and an eight-year extension of the 30% Federal solar tax credit for homeowners that was included in the Federal government’s $700-billion financial industry bailout and stimulus plan is another big factor expected to drive costs down.

However, a report posted today on Bloomberg issues a word of caution about the difficulties the Obama administration may stumble upon. “New loans to harness the wind, sun and biodegradable waste will need extra government backing in a deepening recession”. The statement was made by Clayt Tabor, finance director at Midwest Wind Finance, a wind-farm developer in Minneapolis. Mr. Tabor said that even fully funded projects may exceed the 2012 deadline to double renewable energy because they take at least three years to develop.

Still, not everyone is discouraged as far as investment goes. A report about the Wharton Energy Conference notes that several speakers remained bullish about the renewable energy market in the current crisis climate as “energy volatility has underscored one of the chief benefits of wind, solar and geothermal energy: The fuel is free, making it easier for producers to plan, and it attracts customers who want steady prices.”

What do you think? The discussion is open!

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