L R AS Published on Saturday 11 April 2020 - n° 317 - Categories:funding
After the crisis, capital will be in short supply. Taking inspiration from the American experience?
The pandemic will provide a significant improvement for the renewable industry because it will be the industry that provides the jobs and achieves the public policy objectives.
In 2009, under the American Recovery and Reinvestment Tax Act, the U.S. Treasury created the 1603 program to make payments - rather than investment tax credits - to revenue-generating clean energy projects. 26 billion has been spent on nearly 110,000 clean energy projects.
The author believes that a similar measure should be taken to stimulate solar development in the aftermath of the pandemic. Indeed, after the health crisis, renewable projects will need to be developed and built. However, tax credits do not provide the capital needed to revive the projects. An alternative method of financing should be considered. Lenders will see a significant growth in their activity. Many players will resort to debt because the returns will be higher by using debt.
In the United States, the demand for capital is what will lead to a rapid rebound in renewable energies.
ttps://www.pv-magazine.com/2020/04/09/covid-19-will-provide-a-significant-enhancement-to-the-renewable-industry/
PV Magazine of 9 April
Editor's note This system of direct lending by the American administration explains that at the time, the American economy had recovered faster than the European economy. This system of direct loans had escaped observers.
