An Open Letter to Congress
By Michael Vickerman, RENEW Wisconsin
July 10, 2008

If you want to know more about the economic, environmental and security benefits from renewable energy development, look no further than my house in Madison, Wisconsin. A crew from a local solar contractor just finished installing a solar electric system that will, when activated, produce about one-half of the electricity used in our household. . .

As you very well know, federal tax credits have been the principal policy tool for accelerating renewable energy development in this country. Right now, most renewable energy technologies are more expensive than fossil fuels, but the federal incentives level the economic playing field, providing breathing room for solar, wind and biogas to mature and become cost-competitive with more established energy resources. This has been especially true with wind generation, which has expanded from 6,500 megawatts in January 2005 to over 19,000 today. This tripling of windpower capacity in less than four years could not have happened without the production tax credit being in place during that time.

How critical is the solar tax credit in driving solar’s growth in the United States? If our  middle-class household is at all representative of the solar-installing customer base, I can honestly say that the federal incentive was a necessary component to making that investment work for us. Had federal incentives not been available this year, our budget would have been insufficient to absorb the substantial up-front expense that comes with owning a solar energy system. 
Indeed, when I compare the flurry of installation activity now with the near-dormant conditions that prevailed just three years ago, it’s clear that the federal tax credit has greatly expanded the size of the domestic solar energy market. . . .

The U.S. economy is on the ropes, and a lot of unpleasant policy trade-offs lie ahead. As the cost of fossil fuels escalate, and the housing sector and the automobile industry contract further, the U.S. can ill afford to skimp on the one energy pathway that can, with the proper policy support, create jobs by the thousands and convert capital into socially productive and sustainable enterprises. If Congress is truly serious about turning the economy around, reducing the trade deficit, making progress on climate change, and creating a more energy-secure America, it must extend the renewable energy tax incentives, preferably this month. No other action will accomplish so much, or cost so little.

Read the full letter on RENEW Wisconsin's blog.