A few weeks ago I [Arno Harris] flagged a story in the Christian Science Monitor titled
"Stimulus Funds for Clean Energy Largely Unspent" because I
thought it deserved a clarifying 'blog post. The story repeats several
big misunderstandings about the status of renewable energy
programs included in the American Recovery and Reinvestment Act of 2009
(ARRA). The general thrust of the story is that the lack of immediate
and large uptake of stimulus funds is a sign that the program isn't
working or having its intended result.
The reality is that despite the low outflows of ARRA funds to date, the stimulus program is playing an important role in maintaining business continuity for developers of solar and wind projects in the US. In fact, the expiration of the program at the end of this year poses a major disruptive threat to the progress that's been made in renewable energy in the US over the last few years. It's critical that we get the program extended for a couple more years to enable the industry to recover fully.
ARRA was passed in the early days of the Obama administration as the magnitude of the financial crisis began to unfold. Among its many provisions was a section intended to support continued development of renewable energy projects--particularly wind and solar projects. The provision allows wind and solar developers to receive a cash grant in lieu of the Investment Tax Credit (ITC).
To read the full, original article click on this link: Big Misunderstandings about ARRA Stimulus for Clean Energy
Author: Arno Harris
