President Obama Awards $2.3 Billion for New Clean Energy Manufacturing
January 13, 2010
President Obama announced on January 8 the award of $2.3 billion in Advanced Energy Manufacturing Tax Credits for clean energy manufacturing projects across the United States, provided as part of the American Recovery and Reinvestment Act. The tax credits will go to 183 energy enterprises in 43 states involved in manufacturing components and systems relating to renewable energy, energy efficiency, and other clean energy technologies. Next-generation wind turbine blades, smart meters, and double-reflective glass for solar panels are among the designated products produced by the companies. The investment tax credits, worth up to 30% of the cost of each planned manufacturing project, will leverage private capital for a total investment of nearly $7.7 billion in U.S. high-tech manufacturing. President Obama said that the awards will "help close the clean energy gap" between the United States and other countries, while creating jobs and reducing carbon emissions.
The projects were competitively selected through a merit review process, and the companies chosen say they will create more than 17,000 jobs. While projects selected for this tax credit generally must be placed in service by 2014, about a third of them will be completed in 2010. Qualifying manufacturers will produce solar, wind, and geothermal energy equipment; fuel cells, microturbines, and batteries; electric cars; electric grids to support the transmission of renewable energy; energy conservation technologies; and equipment that captures and sequesters carbon dioxide or reduces greenhouse gas emissions. For example, to boost the smart grid, Itron, Inc. is making one of the first smart meters for the residential market that provides built-in, two-way communications and a remote on/off switch, giving customers more choice while enabling utilities to provide higher reliability at lower cost.
Manufacturers of solar photovoltaic modules and components garnered about 40% of the tax credits, including more than $400 million for materials and component manufacturers such as AE Polysilicon Corp.; Dow Corning; DuPont; Hemlock Semiconductor Corp.; PPG Industries, Inc.; REC Silicon; Solaicx; and Wacker Polysilicon North America LLC, plus more than $500 million for both established and up-and-coming solar cell and module manufacturers like Abound Solar, Inc.; Amonix, Inc.; BP Solar International, Inc.; First Solar, Inc.; Konarka; Miasole; Nanosolar; Schott Solar, Inc.; Sharp Electronics Corp.; Spire Semiconductor, LLC; Stion Corporation; Suniva, Inc.; SunPower Corporation; Suntech; United Solar Ovonic, LLC; and Xunlight Corporation. See the DOE press release, the tax credit fact sheet, and the full list of projects (Excel 115 KB).