On February 16th, 2012, leadership in the U.S. House of Representatives unveiled compromise legislation to extend a payroll tax cut and unemployment benefits, which does not include an extension of the Section 1603 Treasury Grant Program (TGP).

The Solar Energy Industries Association (SEIA, Washington D.C., U.S.) released a statement expressing disappointment in this result, stating that there remains a "compelling need" for a TGP extension. The organization had lobbied heavily for another one-year extension of the program, following an extension secured in December 2010.

"Small businesses, which are the backbone of our economy, will bear the brunt of this inaction," stated SEIA President and CEO Rhone Resch. "The 1603 program enabled solar installers to develop 22,000 projects across the United States, with an average of USD 153,000 in private sector investment generated by each project."

"These projects were developed primarily by small businesses that created jobs and new economic opportunity in the U.S. The expiration of the program is putting many of these companies at risk."

SEIA to continue working to pass TGP extension

SEIA notes that the expiration of the program will impact small PV developers more than large developers, who it says have the scale and resources to access tax equity financing in a way that smaller businesses do not.

The TGP was originally created as part of the American Recovery and Reinvestment Act of 2009 ("stimulus package"), and was originally set to expire on December 31st, 2010. The one-year extension to the program expired on December 31st, 2011.

SEIA states that it will continue working to pursue opportunities to extend the program.

2012-02-20| Courtesy: SEIA; Image: Whitehouse.gov | solarserver.com © Heindl Server GmbH

Our editorial selection of breaking solar news is published at:
www.solarserver.com/solar-magazine/solar-news/top-solar-news.html