The Energy Policy Act of 2005, signed into law by President George W. Bush, was the first bill of its kind to address national energy policy in over a decade. Spurred in part from the far reaching Northeast Blackout in 2003, the Energy Policy Act set to create and bolster infrastructure across the US to ensure that we meet our demand for continuous and reliable energy.
Like other mammoth pieces of legislation, the Energy Policy Act offers an array of directives and monetary incentives to fund research and spur growth within the nuclear, coal, and renewable energy “power sectors.” It’s also the law that provides tax breaks for hybrid cars and extends Daylight Saving Time. (Don’t forget, time springs forward on March 9, 2008.)
Industry and other special interest groups tended to like the bill because it provided a bit-of-something-for-everyone. Environmental advocates, however, criticized the bill for not setting strong enough standards to reduce or dependence on foreign oil or to curb our collective appetite for energy.
That said, from a solar energy perspective, the bill provided a gem – federal tax breaks to residents and businesses that choose to invest in solar and other renewable energy technologies. Though perhaps a modest incentive, the no greater than $2,000 federal tax credit for homeowners has influenced many residents to install solar photovoltaic or solar hot water systems in their home. As mentioned in previous posts, those incentives are set to expire on December 31.
With or without national incentives, solar energy technologies are here to stay. Yet it sure would be great if Congress could overcome differences and extend (and increase) the tax incentives for renewable energy – a very cool act indeed.
