The sensational headlines over the past two months regarding the Solyndra bankruptcy could give the false impression that the U.S. solar energy industry is the primary beneficiary of energy-related federal subsidies and tax breaks. This is simply not the case.

Broader perspective is in order.

As America grew into an industrial power over the last 150 years, the federal government played an indispensable role in developing the nation's energy resources. Private-sector energy industries — from 19th-century coal through 20th-century oil, natural gas and nuclear energy — have been launched and sustained through supportive federal policies.

Recognizing the benefit of accessible energy for all Americans, favorable policies to facilitate the production and use of these resources remain in place today.

Pure free market advocates may argue that all such policies should be repealed. But the simple fact is that we need a ready supply of abundant energy to fuel economic growth and to increase our national security. America's prosperity over the last century would have been inconceivable without policies that supported the development of the nation's energy resources.

Republicans and Democrats, conservatives and liberals alike have generally supported the development of a diverse energy portfolio because energy security, reliability and economic development are in our nation's best interests.

The facts are clear. For decades, America's petroleum industry has relied on favorable tax, royalty and resource policies specifically designed to encourage oil and gas exploration. Support for the coal industry dates back to the 19th century and helped fuel America's industrial revolution. And without the liability shield afforded by the Price-Anderson Act, nuclear energy would not be providing 20% of our energy production today.

There is no doubt that America's need for energy will grow in the coming years. Advocates for a responsible "all of the above" approach should encourage the continued development and use of all our domestic energy resources. In this regard, solar can make a significant contribution.
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Unlike other energy sources that have received permanent support for decades, the current federal solar tax credit has been in place only since 2006 and is scheduled to expire in 2016. But in this short time, the policy has been an overwhelming success, producing a strong return on investment to the taxpayer and the American economy.

The U.S. solar industry now employs more than 100,000 Americans, according to a census by The Solar Foundation, double the number from 2009. They work at 5,000 companies, the vast majority being small businesses, in all 50 states. The U.S. solar industry grew by 69% in the past year, making it not only one of the fastest growing sectors in the U.S. economy, but also one of the most innovative.

Since the beginning of 2010, solar panel prices have dropped by 30%, and costs continue to fall. The United States was a net exporter of solar products in 2010 by $2 billion — even to China. Solar power in the U.S. now exceeds 3,100 megawatts, enough to power more than 630,000 homes.

An independent analysis by EuPD Research projects that a one-year extension of the 1603 Treasury Program (a federal grant in lieu of the existing solar tax credit) will help accelerate job and wealth creation in America while helping to foster the conditions that allow for further deployment of solar energy.

Eliminating this program amounts to a tax increase on the thousands of small businesses that are creating jobs in solar.

Americans of all political beliefs understand the importance of a strong solar industry for our nation's economy. The fourth annual national survey conducted by independent polling firm Kelton Research a month after the Solyndra story broke shows nine of 10 Americans — 89% — think it is important for America to develop and use solar energy.

Support is strong across the political spectrum — 80% of Republicans, 90% of Independents and 94% of Democrats. More specifically, 82% of Americans support federal tax credits and grants for the solar industry similar to those received by oil, natural gas and coal for decades. Seventy-one percent of Republicans agree, as well as 82% of Independents and 87% of Democrats.

A serious "all of the above" national strategy to meet our growing energy needs must have solar as part of the equation. The United States has the potential to be the world's leading solar market if we have the foresight and vision to utilize our vast solar resources as we have with every other major domestic energy source.

• Resch is president and CEO of the Solar Energy Industries Association in Washington, D.C.

By RHONE RESCH
Posted 11/15/2011 07:10 PM ET

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