DOE Selects 13 Solar Energy Projects for up to $168 Million in Funding

First funding awards for Solar America Initiative to make solar technology cost-competitive by 2015

LOWELL, MA - U.S. Department of Energy (DOE) Secretary Samuel W. Bodman today announced the selection of 13 industry-led solar technology development projects for negotiation for up to $168 million (FY’07-’09) in funding, subject to appropriation from Congress. These projects will help significantly reduce the cost of producing and distributing solar energy. As part of the cost-shared agreements, the industry-led teams will contribute more than 50 percent of the funding for these projects for a total value of up to $357 million over three years. These cooperative agreements, to be negotiated, will be the first made available as part of President Bush’s Solar America Initiative (SAI), a component of his Advanced Energy Initiative (AEI), announced in his 2006 State of the Union Address. Secretary Bodman made today’s announcement while visiting Konarka Global Headquarters in Lowell, Massachusetts, one of the selected solar energy project sponsors.

“Solar technology can play a crucial role in moving toward affordable net zero energy homes and businesses – which combine energy efficiency and renewable energy produced on-site. Efficient buildings with solar power generation can help reduce peak demand and ease the need for expensive new generating capacity, transmission, and distributions lines as our economy grows,” Secretary Bodman said.

President Bush’s AEI challenges Americans to change the way we power our nation. As an integral part of the AEI, the Solar America Initiative aims to bring down the cost of solar energy to make it competitive with conventional electricity sources in the U.S. by 2015. The SAI is also part of the President’s commitment to diversify our energy resources through grants, incentives and tax credits and; aims to spur widespread commercialization and deployment of clean solar energy technologies across America, which would provide long-term economic, environmental, and security benefits to our nation.

The teams selected for negotiation have formed Technology Pathway Partnerships (TPP), which include companies, laboratories, universities, and non-profit organizations to accelerate the drive towards commercialization of U.S.-produced solar photovoltaic (PV) systems. These partnerships are comprised of more than 50 companies, 14 universities, 3 non-profit organizations, and 2 national laboratories. DOE funding is expected to begin in FY’07, with $51.6 million going to the TPPs.

In addition, the projects announced today will enable the projected expansion of the annual U.S. manufacturing capacity of PV systems from 240 MW in 2005 to as much as 2,850 MW by 2010, representing more than a ten-fold increase. Such capacity would also put the U.S. industry on track to reduce the cost of electricity produced by PV from current levels of $0.18-$0.23 per kWh to $0.05 - $0.10 per kWh by 2015 – a price that is competitive in markets nationwide.

As part of a broader effort to highlight the Bush Administration’s bold energy initiatives, today, Assistant Secretary for Energy Efficiency & Renewable Energy Andy Karsner traveled to United Solar Ovonic in Auburn Hills, Michigan to highlight these selections and the Solar America Initiative. Tomorrow, Under Secretary for Science Dr. Raymond L. Orbach will travel to Boeing in Sylmar, California to discuss today’s selections and meet with representatives from the solar industry.

Solar energy is a clean, abundant, widespread, and renewable energy source that can be used to increase electricity generating capacity while decreasing greenhouse gas emissions as compared to other energy conversion pathways. Photovoltaic-based solar cells convert sunlight directly into electricity. They are made of semiconductor materials similar to those used in computer chips. When sunlight is absorbed by these materials, the solar energy knocks electrons loose from their atoms, allowing the electrons to flow through the material to produce electricity. The process of converting light to electricity is called the photovoltaic effect.

Teams Selected For Negotiations under the Solar America Initiative:
Amonix, Boeing, BP Solar, Dow Chemical, General Electric, Greenray, Konarka, Miasole, Nanosolar, Powerlight, Practical Instruments, SunPower, United Solar Ovonic

For more information on the solicitation and facts about the Solar America Initiative, visit: http://www.eere.energy.gov/solar/solar_america/.

The Energy Policy Act of 2005 (EPAct), signed by the President in August of 2005, provides incentives for purchasing and using solar equipment. Now extended through 2008, these incentives could provide a credit equal to 30 percent of qualifying expenditures for purchase of commercial solar installations, with no cap on the total credit allowed. EPAct also provides a 30 percent tax credit for qualified PV property and solar water heating property used exclusively for purposes other than heating swimming pools and hot tubs. Private property owners of qualified property could be eligible for a credit up to $2,000 for either property, with a maximum of $4,000 allowed, if both photovoltaic and solar hot water qualified properties are installed. More information on available incentives for solar installations is available at:http://energystar.gov/index.cfm?c=products.pr_tax_credits.

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