Efficiency industry eyes federal grant expiration (Silicon Valley)

Silicon Valley's energy efficiency players are keeping an eye on Washington and the fate of a cash grant program that is due to expire this year.

Industry leaders in the energy efficiency space say the loss of the cash grants from the U.S. Treasury Department could mean a loss of business to them, making it more difficult for companies to afford pricey installations on solar panels, wind turbines or energy fuel cells.

The program is known as Internal Revenue Service Section 1603, a part of the American Recovery and Reinvestment Act.

Josh Richman, director of business development at venture-backed Bloom Energy Corp., which makes a fuel cell called the Bloom Energy Server, said customers have definitely benefited from the cash grants. Bloom customers include Cypress Semiconductor Corp., eBay Inc. and Google Inc.

Richman said Bloom has sold all of its fuel cell inventory for 2010, but the entire fuel cell and solar industries are closely watching what happens.

"The extension of this program is critically important," Richman said. "We’re sharing the importance of this with our friends on the Hill, and they're very sympathetic."

Richman said there's a lot of discussion in the industry about extending the grant for two years; that amount of time will help provide market certainty for companies like Bloom.

It also will provide that certainty for customers who are evaluating whether to add solar or a fuel cell. They need to know the grants will be available, he said.

It's not a cheap decision. Each Bloom system costs upwards of $800,000, not including infrastructure and installation.

Read the full story in the Silicon Valley / San Jose Business Journal.