President Obama has announced US$2.3bn in tax credits for clean energy projects across the USA, estimating that the 183 approved projects in 43 states will create thousands of high-quality clean energy jobs and the domestic manufacturing of advanced clean energy technologies including solar and wind energy technologies.
“Building a robust clean energy sector is how we will create the jobs of the future,” says Obama. “The Recovery Act awards I am announcing today will help close the clean energy gap that has grown between America and other nations while creating good jobs, reducing our carbon emissions and increasing our energy security.”
As part of the Recovery Act, the tax credits are intended to build a “robust domestic manufacturing capacity” to supply renewable energy projects with US-made parts and equipment. The credits are also an important step towards meeting the goal of doubling the use of renewable energy within the next three years with wind turbines and solar panels built in the United States.
“By investing in innovative clean energy manufacturing projects like these, we are not only creating good jobs now, but helping lay a new foundation to keep America competitive in the 21st century economy,” adds Vice President Joe Biden. “This is what the Recovery Act is all about.”
The approved clean and renewable energy projects were competitively selected through a merit review process, and the recipient companies estimate they will create 17,000 jobs. In solar energy, PPG Industries will produce a double anti-reflective coating for glass to make solar cells more efficient while, in wind energy, TPI Composites is building a new manufacturing facility in Nebraska to produce next-generation wind turbine blades.
The programnme is currently capped at US$2.3bn in tax credits and was over-subscribed by a ratio of 3-to-1, reflecting a “deep pipeline of high-quality clean energy manufacturing opportunities,” according to the Department of Energy (DoE).
“The world urgently needs to move toward clean energy technologies, and the United States has the opportunity to lead in this new industrial revolution,” says DoE secretary Steven Chu. “Today's awards will create new jobs and jumpstart the industries we need to both solve the energy problem and ensure America's future competitiveness.”
This funding, combined with other investments under the Recovery Act, “will drive significant growth in the renewable energy and clean technology manufacturing sectors and give the United States the ability to lead globally in these markets,” according to DoE documents. The investment tax credits, worth up to 30% of each planned project, will leverage private capital for a total investment of US$7.7bn in high-tech manufacturing.
As part of a partnership between DoE and the Treasury, the two agencies worked together to develop, launch and award these funds in record time. Qualifying manufacturers will produce solar, wind and geothermal energy equipment; fuel cells, microturbines and batteries; electric cars; electric grids to support the transmission of renewable energy; energy conservation technologies; and equipment that captures and sequesters carbon dioxide or reduces GHG emissions.
“There is no greater priority for this administration than getting Americans back to work,” says Treasury secretary Tim Geithner. “The awards announced today, together with the more than US$5bn in private sector capital spurred by our investment, will drive significant growth in the renewable energy and clean technology manufacturing sectors, good jobs, an energised private sector marketplace and a leadership role for the US in these crucial high-growth markets.”
Projects selected for this clean and renewable energy tax credit must be placed in service by 2014, but DoE estimates that 30% of them will be completed in 2010. Projects were assessed on commercial viability, domestic job creation, technological innovation, speed to project completion, and potential for reducing emissions. DoE also considered diversity of geography, technology and project size, and regional economic development.