Wednesday, May 14, 2008

House Bill To Extend Solar Credits Likely To Die In Senate

From Barron's Eric Savitz:

Solar stocks have been rallying on reports that the House this week will approve a bill that includes extensions of tax credits for renewable energy sources such as wind, solar and biomass. And while it does appear likely that the measure will pass, there is reason to believe it will get killed off in the Senate in its present form.

Erik Olbeter, a Washington-based analyst with Pacific Crest writes that enthusiasm for the bill is “misplaced,” and represents “a significant negative” for efforts to pass the tax credit package. “Industry representatives and lobbyists were hoping for a much better bill that might be able to muster Republican support in the Senate,” he writes. “This is not that bill.” And he says failure to win passage is a negative for solar companies with exposure to the U.S. market - he cites SunPower (SPWR) and Akeena Solar (AKNS) specifically - and for major wind turbine manufacturers, such as Denmark-based Vestas....MORE