What to now expect from Washington on solar policy

The reelection of President Barack Obama has been described by industry leadership as a “powerful ally” to the solar sector. The Congress also gained several staunch solar supporters.

“For specifically solar-related outcomes, we couldn’t have hoped for more in this election,” John Stanton, vice president of government affairs at SolarCity, told Solar Industry Magazine.

But when solar supporters return to work this month for a lame-duck session of Congress, many of the same political issues that have haunted the renewable energy industry will persist – especially if the same partisan gridlock that characterized Obama’s first term carries over into the lame-duck session and into his second term.

Although solar professionals are not contending with an imminent tax credit expiration (as is the case in the wind industry), plenty of challenges await.

Solar Industry lists five vital post-election political issues to watch:

The Looming fiscal cliff

For the solar sector, the effects of Congress’ attempts to back away from the cliff could be multi-faceted: First, if tax extenders are taken up as part of this work, a production tax credit extension – with or without a commence-construction provision – or other tax incentive changes could result, said Rhone Resch, president and CEO of the Solar Energy Industries Association

Relief from anti-renewables rhetoric?

In recent years, some members of Congress and affiliated political action committees have unleashed increasingly aggressive attacks on renewable energy – particularly solar energy – as critics of the Obama administration’s investments in the sector sought to paint such spending as wasteful and even politically corrupt.

Status of the investment tax credit

Although the investment tax credit (ITC), currently in place through 2016, could hypothetically face an early termination – possibly under tax reform passed by Congress as part of its fiscal-cliff attack plan – panelists on both the Chadbourne webinar and the SEIA webinar expressed confidence that the credit will remain safe.

Carbon tax?

Obama and his Republican challenger Mitt Romney did not discuss climate change during their election-season debates. But with recent natural disasters and the election of some environmentally minded new members of Congress, the issue of tackling climate change has gained new momentum lately – to the possible benefit of the solar sector.

New leadership

Finally, solar advocates will need to learn some new faces at top posts in multiple branches of the federal government.

Sen. Ron Wyden, D-Ore., described by Resch as enthusiastic and energetic, will now chair the Senate’s powerful Energy and Natural Resources Committee. Sen. Lisa Murkowski, R-Alaska, will remain ranking member. Sen. Max Baucus, D-Mont., will stay at it his post as chair of the Finance Committee, which will see an influx of new

Energy Secretary Steven Chu, Interior Secretary Ken Salazar and Environmental Protection Agency Secretary Lisa Jackson may depart the Administration.

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