The production tax credit is adjusted to keep pace with inflation, so that means wind power plant operators will now get 2.3 cents per kilowatt-hour instead of 2.2.
The PTC expiration and continued falling costs pushed the U.S. wind industry to install nearly 13.2 gigawatts of new capacity in 2012, shattering the old record of 10 GW.
The wind industry says it is switching into gear with the PTC now extended, but don’t expect 2013 to be a record-shattering year for new installations.
Midwest Energy News reports on how Michigan’s wind energy industry has found some new life in wake of the tax credit renewal for wind production.
The fiscal cliff deal includes a production tax credit for wind for facilities that are under construction before the end of 2013.
The tax bill passed early Tuesday by the U.S. Senate extends the production tax credit for wind for one year, but the bill’s fate in the House was uncertain.
With the production tax credit set to expire, the U.S. wind industry might bring 6,000 megawatts online this month, nearly matching 2011′s total capacity additions.
Extend the production tax credit at 2.2 cents per kilowatt-hour now, then gradually decrease the subsidy until it disappears for projects put in service after 2018, the AWEA tells Congress.
Last week saw more calls for an extension of the wind energy production tax credit, but don’t expect anything to happen until the president and Congress agree on a larger budget deal.
Led by a Republican Washington insider, the Red State Renewable Alliance forms to back wind power as it fights for a production tax credit extension.