The Sandbox

Last weekend, the U.S. House of Representatives passed the bills, “New Direction for Energy Independence, National Security, and Consumer Protection Act,” and “Renewable Energy and Energy Conservation Tax Act of 2007.”

The passage of the first bill mentioned above follows the passage of the Senate version of the energy bill, HR 6, which passed in June.

While a number of hurdles remain before the legislation moves to the President's desk, N.Y.-based financial services firm Lazard Capital Markets’ managing director and senior analyst for alternative energy and industrials Sanjay Shrestha views the passing of the bills as a significant positive step towards creating a cohesive energy policy, and notes that this bill contains several meaningful positive clauses for the alternative energy sector.

Among the key provisions of the House energy bills that the firm believes are positive for the alternative energy sector, there is good news in particular for solar adopters. The bill covers an eight-year extension of the existing 30 percent investment tax credit (ITC), the ability for corporate and personal filers to claim the ITC against the alternative minimum tax, the removal of the provision barring utilities from using the section 48 ITC, and the elimination of the existing $2,000 maximum dollar limitation (although the legislation provides no extension of the existing 30 percent ITC for homeowners), Lazard says.

The bills also increases the $500 per half kW of capacity cap for qualified fuel cells to $1,500.

Do you think this will boost solar adoption? Chime in with a comment!

--Ann Steffora Mutschler, Senior Editor