IDT Energy has been scanning the news for information about the developing renewable energy industry. What we’ve found a few factors influencing the shape of the industry today.
1. Energy Prices: The higher oil and natural gas cost, the more attractive renewable energy becomes. The opposite is also true. Lower prices for oil and gas make renewable energy less attractive.
2. Availability of Credit: When loans are hard to get people cannot install various types of energy technology. Even if it will save money in the long term, if people don’t have the cash to install, for instance, a solar system in their home, if the bank won’t lend them the money, it won’t get installed.
3. Federal Tax Credit: There is a tax credit of 30% on the installation of renewable energy projects for commercial and residential use. The $2000 cap was removed for residential systems, and the incentive was extended to utilities. The credit, originally enacted in 2005 has been extended until 2016.
4. Election of President Obama: Setting a goal of 25% of U.S. electricity to come from renewable sources by the year 2025 and calling for $150 billion in invests over 10 years in clean energy and infrastructure, it is clear that for this administration green energy is a priority.
