Solar and Economic Growth

A growing energy industry will obviously produce jobs, and renewables like solar have been a crucial part of that growth. RedOrbit has put out the latest in a string of articles about the positive effect of the energy industry on national job growth. With worries of an upcoming recession having turned into worries about the now-present recession, this is even more important to keep an eye on.

Obviously, as the article points out, a lot of the growth within solar specifically has come from government tax credits. But this support is crucial to all players in the energy industry - wind, oil, coal, etc. all receive government support in some form or another. Solar isn’t getting particularly special treatment, and it is making the most of the support it’s receiving. While I highlighted earlier this year the need not to worry excessively about the extension of a solar credit, and I still see little reason to worry that Congress won’t find the time to make this happen, articles like this help emphasize the importance of these credits and how crucial it is to extend them. In general, what’s good for solar is good for the country at large, and supporting the solar industry by making solar adoption easier will only continue to provide economic benefits across the country. And with the current economic climate, that’s something to pay attention to.

Articles like this, however, only fuel my optimism. 2008 is looking to be a crucial election year, with a lot of turnover possible. Leaders in many positions are nervous about holding on to their seats. Anyone in Washington who sees that failing to extend the credits will result in the possibility that “116,000 jobs and $19 billion in U.S. investment could be lost in a one-year span if the credits are not renewed” will have to stop and think about the wisdom of not voting for an extension. While this article highlights the negative impact of taking away the tax credits, it also makes it harder to see how a solution can’t be reached.

We’ll keep you posted with the latest regarding the tax credits for the rest of 2008.