Two major stimulus packages spawned by the financial crisis have reshaped the federal policy landscape for renewable power. Most notably, qualifying solar, wind and other renewable energy-generation projects can choose either a 30% investment tax credit or a 30% cash grant in lieu of the ITC (the Treasury Grant Program). Wind and other nonsolar projects formerly eligible only for the production tax credit can for a limited time elect any of the PTC, the ITC or the Treasury cash grant.
To date, $2.7 billion of program grants have funded hundreds of renewable energy projects. Estimated 2010 total cash grants could approach $3.5 billion. However, the program is scheduled to expire at the end of this year. To qualify for the cash grant, projects must either be operational by the end of 2010 or else must “begin construction” by then and be operational by the end of 2012 for wind and by the end of 2016 for solar. This article focuses on meeting the year-end deadline.
