Tax credits for solar really do create economic growth

Because of federal and state incentives, the booming solar industry in California is adding exponentially more to the economy, according to this story.

Two years into the California Solar Initiative, the taxpayers’ investment of $775 million in solar rebates has yielded $5 billion in private investment in solar projects and rapidly expanded the state’s renewable energy industry, according to the report. That’s helped create strong solar companies like solar cell maker SunPower (SPWRA) and markets for thin-film solar companies such as First Solar (FSLR). The decade-long program is on track to achieve its target of 3,000 megawatts of rooftop solar and in the first two years of the program more solar has been installed in California than in the previous 25 years.

Check out the report from the California Public Utilities Commission. According to a CPUC press release, "On average, for every $1 in incentive committed by the California Solar Initiative, an additional $6 in private funds is invested in solar technology in California."

More states need to introduce aggressive tax credits for solar, wind and other alternative energy production. And if the federal government went even higher than the 30% tax credit, we'd see huge investment by business.

As I've written before, the key to reducing our trade imbalance is curbing our energy imports. And if we curb our energy imports by creating a domestic economy based on green energy production, we will create an export boom.

Remember the huge boom to our economy from the Silicon Valley days? We can do it again, but this time the effects would truly be sustainable.

Facing declining oil production, Mexico installs one of the world's largest wind farms

With a price tag of $550 million, a new wind farm in Mexico is not cheap.

But with oil production falling 9% last year, Mexico realized it needed to take a step toward the future, according to this USA Today article.

Situated on the isthmus between the Gulf of Mexico and the Pacific Ocean, the 6,180-acre farm will boast 167 turbines capable of generating 250 megawatts of electricity. The area has wind gusts of 16-22 mph.

The wind farm is being built and operated by Spanish energy company Acciona Energia, which says it should produce enough electricity for a half million homes, and reduce carbon emissions by 600,000 metric tons annually.

Accounting for other wind projects, Mexico aims to generate 2,500 megawatts of electricity by 2012.

One thing I like about this project is the fact that Mexican cement giant Cemex is putting forward 25% of the development costs, in return for the rights to some electricity. Cemex wants to reduce its energy costs.

Under President Obama's plan to revitalize our economy with green initiatives, he should offer tax incentives that encourage U.S. manufacturers to invest in public wind and solar projects.