By Brian Eckhouse
The Solar Energy Industries Association made the projection Monday as part of a campaign to convince Congress to make the federal tax credit for the sector refundable or payable directly to businesses and customers.
“As the stock market tanks, tax-equity markets are drying up making it even harder for solar companies to utilize tools like the solar investment tax credit,” Abigail Ross Hopper, SEIA’s president and chief executive officer, said in a statement.
It’s a stark change from a month ago, when solar jobs were projected to surge 7.8% this year. The reasons for that earlier optimism included declining costs and a rush to install panels before tax credits expired.
Convincing the Senate to add a provision allowing for direct payments for renewable energy into the virus relief bill is apt to be difficult because Democrats have already opposed specific benefits for the oil and gas industry, said Keith Martin, a Washington-based attorney who specializes in wind and solar financing deals for the firm Norton Rose Fulbright.
“It’s a tall order,” Martin said in an interview, adding that the renewable energy industry hasn’t been hit as hard as airlines, hotels and other industries pushing for immediate relief.