Tawanai

With the recent global economic recession, green technology spending and development has taken a hit. But the stimulus spending plan can bring spending on green and clean technology back. The question is that how can Pakistan become part of this push and develop some technology and expertise to benefit with local situation and also as a service provider. MSNBC reports that the American Recovery and Reinvestment Act of 2009–the stimulus package provides about $80 billion altogether for renewable energy, energy efficiency, mass transit, updating the electrical grid and research. The hope is that investing in solar power and other forms of renewable energy will create jobs, help businesses grow, make our economy more productive, and create a cleaner world for the future.

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The package helps bring clean energy businesses to the forefront by using tax incentives, bonds, grants and loan guarantees. Two measures that will help solar are the grants and loan guarantees for renewable energy. Tax credits are great when you’re making money, but many investors aren’t profiting in the current economy, dampening appetites for tax credits. The stimulus allows those installing solar power to apply for a cash grant instead of a tax credit and get the money back in 60 days. These grants will bring investors back into solar and wind, ensuring strong growth.

The stimulus also provides $6 billion in loan guarantees that will help solar energy grow by making more credit available. Solar energy is a low-risk investment, about as safe as they come. If you put solar panels on a roof, the sun produces power, which in turn makes money. Still, credit has gotten so tight that even safe investments like solar can’t get credit.

“A solar power system generating electricity has a forecastable income stream over the next 30 years,” says Lyndon Rive, CEO of SolarCity, a Foster City, Calif.-based solar installer. “But it’s hard to get credit for these systems. By backing up loans, the government gets lenders to start lending again, which leads to more systems being installed, more jobs and more businesses.”

Other measures to support renewable energy and energy efficiency are also being developed, like on-bill financing in California. On-bill financing of energy efficiency projects will help businesses fund energy efficiency improvements that are paid back through their utility bills, helping them save money overall. Cities in California and other parts of the country are creating solar power and energy efficiency funding for homeowners, who pay back the money over many years through their property taxes. The SBA has a little-publicized 7a loan program to fund energy efficiency projects. The more innovative funding for clean energy and green building that’s available, the more rapidly the field will grow and help the economy.

Clean Technology, Energy, Green, Policy, Renewable Energy, Solar