Extend green energy tax credits

November 24, 2012 by  
Filed under Green Energy News

The Solyndra bankruptcy was cited as an example of a failure of the Obama administration. In fact the Solyndra bankruptcy was proof of the effectiveness of two initiatives included in the second stimulus bill passed after Obama took office.

Removal of the solar tax credit cap and creation of the renewable energy production tax credit created a surge in solar photovoltaic installations. So many systems were installed that competition led to a 40 percent to 50 percent reduction in cost for those panels. Solyndra was working on developing less expensive panels. The drop in cost for those panels was the cause of the Solyndra bankruptcy, not a flawed business plan.

The renewable energy production tax credit also boosted the U.S. wind energy industry, which saw record growth. Republicans are holding up renewal of the renewable energy production tax credit, which is causing layoffs in the solar panel and wind energy industries.

Seeing the drop in price and increased adoption of solar and wind energies led the fossil fuel industry to funnel huge amounts of money to defeat Obama. If Republicans are serious about working with the Obama administration to boost the economy, they should extend the renewable energy production tax credit to create jobs and bolster these industries.

Bruce Wilson

Upper Saucon Township

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