The solar energy industry is alive and thriving in the United States. Unfortunately, in recent months sensational headlines and political gamesmanship surrounding the failure of Solyndra have cast a shadow over the good news about the solar industry. There’s also a false notion circulating that the U.S. solar energy industry is the primary beneficiary of energy-related federal subsidies and tax breaks. This is simply not the case.
Readers of The Daily Caller may disagree about federal support for energy producers, but it would be a mistake to say that the comparatively small federal subsidies and tax benefits received by the solar industry are an anomaly. In fact, all forms of domestic energy benefit from long-established policies to foster a strong, consistent supply of energy.
From 19th-century coal through 20th-century oil, natural gas and nuclear energy, energy industries in the United States have received substantial, permanent subsidies from the federal government. It was right to support the launch of those industries to power our economy then; it is right to support solar to power our economy now.
Today, solar is cost-effective for millions of homeowners and businesses. The price of solar panels has dropped by 30 percent since the beginning of last year. Through innovation, private investment and modest government support, the solar industry grew by 69 percent in the last year during a recession and now employs more than 100,000 Americans at 5,000 solar energy companies across all 50 states.
Compared to other energy sources that have received subsidies for a century, solar is indeed smaller, but it’s growing faster. It’s abundant in all 50 states, unlike any other energy source. Solar now powers the equivalent of 630,000 homes across America. Meanwhile, we are exporting billions of dollars of solar products overseas — even to China— through American hard work and innovation.
An independent analysis by EuPD Research projects that a one-year extension of the 1603 Treasury Program (a federal grant in lieu of the existing solar tax credit) will help accelerate job and wealth creation in America while helping to foster the conditions that allow for further deployment of solar energy. Eliminating this program would amount to a tax increase on the thousands of small businesses that are creating jobs in solar.
When it comes to public opinion, the American people are looking past the Solyndra failure at solar energy’s long-term potential. A national survey conducted by polling firm Kelton Research a month after the Solyndra story broke shows nine out of 10 Americans — 89 percent — think it is important for the U.S. to develop and use solar energy. Support is strong across the political spectrum — 80 percent of Republicans, 90 percent of Independents and 94 percent of Democrats support solar energy development.
More specifically, 82 percent of Americans support federal tax credits and grants for the solar industry similar to those received by oil, natural gas and coal for decades. Seventy-one percent of Republicans agree, as well as 82 percent of Independents and 87 percent of Democrats.
A serious “all of the above” national strategy to meet our growing energy needs must have solar as part of the equation. Solar and other renewables enhance America’s energy security, create real economic impact and put Americans to work.
In the next two to three years, we have the potential to become the world’s largest solar market — if we have the vision to use our vast solar resources as we have every other major domestic energy source.
Rhone Resch is president and CEO of the Solar Energy Industries Association.