SOLAR POWER
Udall Proposes SUN Act to Expand Solar Power
The bill would extend tax credits to people who buy in to solar farms.By David Frey, 3-18-10
David Frey photo.
Sen. Mark Udall announced Wednesday a new bill intended to boost solar energy production by extending solar tax credits to residents who invest in community solar farms to power their homes.
The bill is the first of a series of clean energy bills Udall, D-Colo., plans to unveil. He said the legislation was inspired by conversations he had with residents and business owners on Colorado’s Western Slope during a tour of the region last month.
The bill, dubbed the Solar Uniting Neighborhoods Act, would extend a solar tax credit to those who pay into an offsite community-based solar array to provide power to their homes. Current law allows homeowners to receive a 30 percent credit for installing solar panels on their property.
“These projects have the potential to drastically increase the adoption of clean energy nationwide, but the tax code hasn’t kept up,” Udall said in a conference call with reporters.
Participants own a portion of a community array that provides power to their homes, in partnership with a utility that credits their monthly bills with their solar usage.
Supporters say the system is a less expensive, more efficient means to provide solar power and can appeal to those who can’t or choose not to install photovoltaic systems on their own homes due to cost, roof alignment or because they are renters.
“This model makes solar available to absolutely everyone,” said Paul Spencer, of the Carbondale, Colo.-based Clean Energy Collective. He believes it could expand solar power adoption by up to 67 percent over the next five years in Colorado.
“We’re looking at an incredible opportunity to exponentially increase our installed capacity of renewable energy generation through the incorporation of large-scale utility installations,” said Steve Casey, of Holy Cross Energy, one of Colorado’s largest power cooperatives.
The SUN Act tax credit would run until 2016. The Clean Energy Collective estimates a five-year cost of $117 million, but the Joint Committee on Taxation has not yet released an official estimate.
Udall said the cost would be offset if the bill passes as part of a larger package, such as the clean energy bill introduced in December by Sens. John Kerry, Lindsay Graham and Joe Lieberman.
David Frey writes in Glenwood Springs, Colo. Follow him on his Web site, www.davidfrey.me, or on Twitter.
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Can off-site include the roof of the local Walmart, Target and Home Depot? That's where these really need to go...use land that is already developed...
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