Something to like from the $700B TARP abomination

Well, it will do nothing to solve the credit crisis (as this week is already showing), but the alternative energy investment tax credits got extended for 8 years. Hopefully people will have enough money to install lots of solar systems in the next 8 years!

Solar power, far less economically viable than wind turbines, had the most to gain from the bill. The expiring incentives allowed homeowners to claim an investment tax credit for 30% of the cost of a new solar installation, but capped it at $2,000. The new law, written into the financial rescue bill, extends the 30% credit for eight years and, more importantly, eliminates the cap. That means that on a $27,000 residential solar system of 3.2 kw, a homeowner could take nearly $9,000 off his taxes the first year.

In a market with average electric rates of 11 cents per kwh that would reduce the payback on a solar system from 12 years to seven years. (By contrast, for wind power the bill merely extends by one year the existing 2 cents per kwh production tax credit.)

And near the end of the article was this tidbit. This should be a part of every solar companies PR campaign!

All of Standard Renewable’s solar installations on Galveston Island withstood Hurricane Ike, and they were some of the only power generators up and running in the days afterward. Ike knocked out power to 93% of Centerpoint Energy’s (nyse: CNP – news – people ) 2.2 million customers around Houston. More than two weeks after the storm, some customers are still without power, and repairs will cost as much as $500 million.