Wind Energy
Industry News

Stimulus Bill Delivers $20 Billion to Support Renewable Energy

February 18, 2009

The American Recovery and Reinvestment Act of 2009 ("ARRA") delivers an estimated $20.0 billion in direct and indirect financial support to the growth of renewable energy in the United States. Although exact dollar amounts and many details are still unknown at this time, the ARRA promises to address many current and future concerns of the renewable energy industry.

According to Tim Laughlin, President of Wave Wind, the ARRA includes a number of specific provisions that will benefit the wind energy industry, including:

• $16.8 billion in direct spending on renewable energy and efficiency programs over the next 10 years, including $6.3 billion in state grants.
• $11.0 billion to modernize and expand the energy grid.
• $13.9 billion in subsidized loans and loan guarantees for renewable energy projects.

The ARRA also extends the Production Tax Credit for three years and expands eligibility for the Investment Tax Credit to non-solar project developers, including wind project developers. As an alternative to the Investment Tax Credit, the ARRA also introduces a new grant program covering up to 30 percent of the cost of eligible projects that begin construction in 2009 or 2010.

"Although many details still need to be worked out, we agree with the American Wind Energy Association and others that the stimulus bill holds a lot of promise for the wind energy industry," says Laughlin. "Our goal now is to work with our customers to make sure they enjoy the full support promised by the stimulus bill—for their benefit as well as to help smooth the transition from fossil fuel to renewable energy."