One of the good things about the stimulus bill is that by offering a subsidy for solar developers who begin construction in 2010, the Feds have created a giant incentive for developers to expedite projects.  We’ve already seen some of the benefits of the stimulus through projects that have been announced recently, or already announced projects whose timelines have been accelerated.  As a firm we’ve already felt the trickle down effects of this action, and I can tell from talking to our clients, that they are feeling the positive impact as well.  If you want to have a shovel in the ground in 2010, there are all sorts of soft costs that must be accounted for today, which creates business activity and helps the economy.

But there is also a major problem with the requirement in the stimulus bill that projects need to be under construction in 2010.  That problem relates back to an issue that exists for any kind of developer: permitting.

California has the most momentum of any state when it comes to solar energy.  We have a pretty good solar resource throughout much of Southern California, we have pretty aggressive renewable portfolio standards, and we have high energy costs which make grid parity more of a reality.  But California is also one of the toughest places to get anything permitted.

I won’t waste electronic ink pointing out potential solutions to the permitting problem.  Nobody would listen.  But it does seem reasonable that they should extend the “runway” for solar developers who try to make the 2010 deadline but don’t because of permitting problems.  We’re blazing new trails here and it won’t be a simple process for applicants or reviewing agencies, so we need a little more time.

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