With the passage of the stimulus bill in early 2009, much money was allocated to the renewable energy market. The bill staggered funding to support the following successive objectives:
-Encourage adoption of current technology through efficient energy tax credits
-Support innovation through research and development incentives
-Encourage training and support of "green collar" jobs through education
-Adopt sustainability practices and clean energy solutions in the federal government and grant money to state and local governments for adoption incentives.
The initial stimulus objectives have already begun rolling out. Tax credits for the purchase of solar panels, energy efficient windows, and the replacement of inefficient appliances and HVAC systems helped this industry take less of a hit amidst the last recession. Research and development for renewable energy solutions is at an all time high thanks to this package, despite the typical logic where R&D is a focus only when existing sources of energy become too expensive. So called "green collar jobs" are the new buzz word, in industries like construction, engineering, and architectural services. General contractors and building renovators are speaking green lexicon with retrofitting services like sustainability upgrades and efficient energy audits.
All of these incentives promoted by the federal government were designed to create the perfect storm of research, adoption, and training to nurture a new green energy industry, designed to spur economic growth, technological competitiveness, and better energy security. The long term goal is to sustain growth ahead in a world with dwindling and more sought-after non-renewable resources.
The final stage of stimulus funding begins to roll out at the end of 2010 for implementing green technologies and efficient energy solutions for use across all sectors of public purchasing in federal, state, and local government agencies. The funding of renewable energy government contracts fall into two primary sectors: (1) analysis and consulting for existing infrastructure, and (2) products and services to build new infrastructure.
Comprehensive energy audits and environmental consulting are among the most common RFPs that are opening. At the moment there are active RFPs for state departments and municipalities in California, Colorado, New York, Texas, and more. These requests for proposals include carbon analyses, environmental planning, and consulting services.
Ultimately, the greatest beneficiary of Federal stimulus funding-through training incentives, grants, or government purchasing-are government contracts for the products themselves. Photo voltaic and solar panels, wind turbines, and geo-thermal energy bids are being released daily from state and local governments nationwide. These bids do not end at the installation of solar and PV panels on top of the local City Hall; rather, state and local governments are purchasing contracts for school zone and traffic sign flasher assemblies powered by solar panels, solar-powered water heaters for public buildings, renewable charging systems, and electric/non carbon-emitting vehicles and fleet services.
The stimulus bill's aim was not solely to spend money to pull the country out of a recession. The goal was to support the new and emerging green technology industry from the ground up, where federal, state, and local governments could lead by example in adopting these practices. In addition to spurring research and development and job training, an overhaul of government energy consumption would save energy and costs in the long term, while finally introducing these products into the mainstream.
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