Wind Power Financing Picks Up Again, Thanks to a Little Federal Push
photo: Yovany Alas via flickr
Despite a steady trickle of new wind power projects coming in over the past year since the recession set in, things haven't exactly been going gangbusters in terms of financing. But as the Wall Street Journal points out today, that's starting to change... and (gasp) it's at least partly because of government investment:Developers Can Get 30% in Cash, Instead of Tax Credits
New federal policy, for the first time, allows wind power developers to get 30% of project costs in cash and up front, instead of in tax credits over the life of the project. That in turns lights up the eyes of banks such as Morgan Stanley and Citigroup who say the new plan yields returns of up to 15%.
All told, the WSJ estimates that this newfound government support could lead to an additional 15 gigawatts of wind power being installed through 2010.