A new Southeastern leader for our clean energy future may have just stepped forward. On Thursday, Congressman Steve Cohen (D-TN) from Memphis introduced legislation into the U.S. House of Representatives that would encourage the installation of 10 million solar power systems and 200,000 solar water heaters over the next decade. Senator Bernie Sanders (I-VT) introduced similar legislation in the U.S. Senate.
The Southern Alliance for Clean Energy commends Congressman Cohen for recognizing the federal government’s role in developing local markets for a solar industry that has invested billions of dollars here in Tennessee and across the nation.
The legislation, also co-sponsored by Congressman John Yarmuth (D-KY), would offer rebates for solar photovoltaic starting at $1.75 per watt in 2010, gradually reducing to $0.50 per watt by 2019. Rebates for solar hot water heaters would also be offered at $1.00 per watt thermal equivalent of installed capacity. These rebates would cover up to half of the installed costs of these systems after deducting other state and federal incentives and eligible recipients would have to meet certain energy efficiency criteria. Because these incentives take the form of rebates as opposed to tax credits, nonprofit and governmental entities would all be eligible.
If passed, this legislation would provide the incentives and stability necessary for rapidly developing strong markets for solar technologies. As the most job-intensive energy source, investing in solar means investing in clean energy jobs to fuel our economy. The Southeast is well positioned to capitalize on this opportunity.
Also, as economies of scale are achieved in the solar markets, the incentives decrease steadily over time as solar technologies become more and more cost-effective. This type of long range certainty allows solar industries to plan growth and expansion more successfully because they better understand what future market conditions will look like.
Congressmen Cohen and Yarmuth recognize that solar manufacturing is only one piece of the puzzle in creating a clean energy economy that will fuel our growth in the 21st century. Local and regional markets for clean energy products must be developed and fossil fuel’s vice grip on our energy markets must be broken. This legislation could go a long way towards achieving both of these goals while bringing the economic and environmental benefits that accompany widespread solar development. We applaud these Southeastern leaders for their role in shaping our clean energy future.