Graph of the Day: Despite Anti-Tech Tea Party Troglodytes – Solar Soars

Solar Energy Industries Association/Greentech research:

• The U.S. solar industry installed a quarterly record for new solar electric capacity in Q3 with 449 MW.
• More U.S. solar electric capacity came online in Q3 2011 than all of 2009 combined, and Q4 2011 is predicted to be even larger.
• However, the U.S. solar market faces substantial market uncertainty with financing and political risks, including the looming expiration of Section 1603 Treasury Program.

WASHINGTON D.C. – The U.S. solar energy industry achieved a new record for installations and growth in the third quarter of 2011 thanks to utility-scale project completions, a strong residential market, effective policies and the plummeting price of solar panels, according to a report released today by GTM Research and the Solar Energy Industries Association (SEIA).

Through the third quarter of 2011, the U.S. solar market has installed more than 1,000 megawatts (MW) of solar capacity on the year, already surpassing the 2010 annual total of 887 MW, according to the U.S. Solar Market Insight: 3rd Quarter 2011 report. This includes 449 MW installed in the third quarter alone – a record for quarterly installations and more new solar electric capacity than was added in all of 2009. This also represents 140 percent growth over the same quarter last year.

Much of this growth is due to the Department of Treasury’s 1603 program, which is set to expire on Dec. 31 unless Congress extends it. In the absence of an extension of the program, the report predicts that there will be a tax equity bottleneck for projects in 2012, leading to a possible slowdown in installations in late 2012 and into 2013.

GreenTechMedia:

Update: Last night the U.S. House of Representatives joined the Senate in passing an extension of the Department of Treasury Section 1603 tax grant program — a boon for the U.S.solar and wind industries.

It was signed by President Obama this afternoon.

To take advantage of the extended deadline, eligible renewable projects must begin construction by December 31, 2011.

OK, I’m confused – if anyone knows how a deadline of December 31 equals an “extension” let me know. It’s important to note that this program originated in the Bush Admin –

Certain factions in Washington, D.C. don’t want to renew the tax grant.  The catch is that the 1603 grant provision was actually passed during the Bush Administration.  There is a sense that Republicans don’t want to support anything with the scent of the American Recovery and Reinvestment Act (ARRA) upon it.