For many U.S. solar firms, it feels like all their chips are on the table. Their cards are face up, their feet are pacing around, and their minds are racing. Why? Because an all-too-idle Congress is set to let vital solar tax credits expire at the end of the year. After countless bills and amendments and committees, the Senate and House still cannot come up with a passable piece of legislation. On several occasions things have looked positive, only to fall down before they can truly get up. While many of us have our future solar plans on the line, many U.S. companies have their business on the line.

In recent years there has been a flurry of solar start-up companies emerging. The solar industry has been growing fast and steady, and with it contractors, installers, suppliers and more: all U.S. companies providing U.S. jobs. An expiration of these tax credits would be detrimental to the industry and the floundering, outsource-happy economy. It’s estimated that nearly 40,000 jobs and over $8 billion would be lost. Much of these losses would be felt by the very contractors that represent a lion’s share of our future economy. In addition, solar, and other renewables, represent a reduction in our massive trade deficit and not only jobs, but high-quality careers.

Now I don’t mean to preach the end of the solar industry. On the contrary, solar is set to dominate the energy market of the future. But who will lead? Several solar companies, especially those who ship overseas, or integrated oil firms such as BP and Shell, will see a noticeable drop in production but will likely weather any storm. However, it is these companies that are likely to increase their hold on the industry in the absence of those small American start-ups. Thus preventing them from restarting when all this rebate mess is resolved. It is a consolidation of power in industry that brings us record gas prices with record profits for oil companies. The point being: competition is a healthy, American tradition and one that we rely on the federal government to help foster.

Even with such a hurdle to overcome, solar will keep going, but the repercussions for the U.S. industry will be felt worldwide. We are not the world leader in solar, although we could be. The United States is prime solar real estate, something we don’t need to import. We need to keep our contractors in business to keep the U.S. in business. There is no reason to import solar panels. In fact, those larger firms have rapidly been exporting them to more aggressively solar countries like Germany.

Thankfully states have been keeping the residential side of the industry afloat, but many are already backed up and short on funding. On a larger scale the federal Investment Tax Credit (ITC) has been vital to the growth of commercial solar projects and many of the threatened solar companies. It is time to uncross our fingers and collect our chips. As economists and environmentalists, we need these rebates and tax incentives extended.

Posted on September 11th in Solar News by Dan.