Finally, while the dramatic falloff in new construction has certainly hurt many green companies in the building-materials sector, "some infrastructure investment you can't defer forever," says TectaAmerica's Kamerick. She notes that there are still buildings going up at medical institutions, universities, and municipalities. "We are finding that if people are going to build something, they are willing to look at the capital costs of adding some sort of green solution to the roof," says Kamerick.
Thus there are signs of growth for the alternative-energy sector. Executives throughout the industry are optimistic about the stimulus package, although they are still unsure about the details and how to access the funds. It could take time for the enormous package to make its way through the congressional appropriations process, and individual projects may need to pass regulatory muster, says Kamerick.
Finding conventional financing for alternative energy remains a challenge. But a substantial dose of federal aid, long-standing concern about energy security and price volatility, and widespread new standards for renewable-energy use may help green avoid a repeat of the 1980s, when it experienced its own lost decade.
Kate O'Sullivan is a senior writer at CFO.
Seed Money
The American Recovery and Reinvestment Act of 2009 provides $50 billion for a variety of green-energy initiatives. Here are some of the provisions:
• Smart-grid investments: $11 billion
• State and local energy-efficiency grants: $6.3 billion
• Weatherization of houses for low-income families: $5 billion
• Federal green-buildings program: $4.5 billion
• Clean-coal projects: $3.4 billion
• Research on electric-car batteries: $2 billion
• Worker training for green jobs: $500 million
The act also extends the production tax credit for wind energy and converts solar-energy tax credits to tax rebates.
Reader Comments» Post a comment