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Under the ARRA option of taking the 30% ITC as a cashgrant, the demand for tax equity eases, possibly loweringyields and supporting more projects. Tax equity is stillneeded to monetize project depreciation, however, and willmost likely be used to finance the grant.The Solar MarketplaceWhere we stand: current solar market conditionsThe current market conditions pose somedifficulties for solar energy and otherrenewable sources. With debt less available tonon-investment-grade projects, and more riskembedded into bank spreads (borrowing costplus risk), more projects are unable to befinanced and those that can carry less leveragethan before, said Gianluca Signorelli of MMARenewable Ventures. These debts are usuallyrepayable over ten years, versus the previous15-year-plus horizon. With many tax equityplayers vanished in the wake of the credit crisis,there is a much smaller appetite for tax equitythan in 2008. With a smaller pool and higherdemand, higher yields are present in the taxequity market.The stimulus bill will provide funding for largersolar projects, including ones with CSP.The ARRA helps boost the market for CSP since highcapital costs require the 30% federal ITC, says AbengoaSolar’s Chief Operating Officer, Scott Frier. The accelerateddepreciation bonus is also a necessary driver to bring theenergy cost down for the purchaser. Still, under idealmarket conditions, tax equity investors are needed tomonetize the ITC to make the project viable over the firstfive years. These tax equity investors have dwindled as aresult of the economic crisis, causing developers tolooking to finance projects via debt, but the health of thefinancial sector during RETECH 2009 made restricted theterms and amount of debt available.Along with the other ARRA actions, expedited enactmentof the Federal Loan Guarantee Program and siting processeswill determine the health of solar development astax equity and debt markets get back on their feet.Policies and incentives aimed at kickstartingthe CSP market are essential.Gains from these incentives will far outweightheir implementation costs.– Scott Frier, Chief Operating Officer, Abengoa SolarConclusionsThe past 50 years have seen the birth and rapidgrowth of the solar energy sector, both towardbetter efficiency and cost as well as breadth ofapplication. Solar is unique in its applicability tobuildings, appliances, centralized powergeneration and residential use. The road aheaddemands utilization of new materials and newapplications, the continued availability of silicon,all with the goal of generating more electricity inmore places for less money, and supplying it tothe grid. Solar energy’s representation atRETECH 2009 should be noted for its breadth ofcontent, and promise of the many new ideasthat dot solar’s quest for grid parity and beyond.Session ReferencesA3 - PV TechnologyLarry Kazmerski, Executive Director, Science & Technology Partnership, National Renewable Energy Laboratory(NREL) (Chair)Paul Wormser, Senior Director, Engineering and Product Development, Sharp Solar [slides]Eric Daniels, Vice President, Technology, BP SolarConrad Burke, President & CEO, Innovalight, IncAmerican Council On Renewable EnergyExecutive Summary Report 56