The sun was shining on solar power and other renewable sectors at the end of September when the U.S. Senate passed a bill (the Energy Improvement and Extension Act of 2008) that would guarantee: (1) $18 billion in tax credits for those using wind, solar and geothermal energy sources; and (2) 30-percent tax credits for those purchasing residential, commercial and utility-scale solar photovoltaic systems with no cap for eight years.
The immediate reaction of alternative energy ETFs like the First Trust ISE Global Wind Energy (FAN) and the Claymore/MAC Global Solar Energy (TAN) was rather subdued.
Any gains were quickly erased after House Democrats scuttled their own bill by introducing a new one that is weighed down with a provision to pay for renewable tax cuts with money pulled from other sources.