Xantrex Technology Inc. (TSX:XTX) is pleased with The Energy Policy Act of 2005 signed by US President George Bush August 8, 2005. The legislation provides much anticipated tax credits to alternative energy projects, which will provide a significant boost to the renewable energy market.
Xantrex applauds US Energy Bill as boost to renewable energy market
VANCOUVER, BC, August 16, 2005 - Xantrex Technology Inc. (TSX:XTX) is pleased with The Energy Policy Act of 2005 signed by US President George Bush on August 8, 2005. The US$12.3 billion legislation provides much anticipated tax credits to alternative energy projects, which will provide a significant boost to the renewable energy market. Xantrex products and solutions are well positioned to meet the needs of customers taking advantage of the renewed and expanded alternative energy incentives.
The bill includes the first-ever US federal tax credit for residential solar energy systems. The residential solar tax credit is 30%, which can be claimed against personal income taxes, with a maximum tax credit of $2,000 per project. This is expected to strongly encourage homeowners and residential developers to consider solar power as a real option. This new tax credit aligns well with the release of the Xantrex GT 3.0 solar grid-tie inverter, which was launched in October 2004, and has already become the fastest-growing residential grid-tie inverter in the solar market.
The commercial solar tax credit has been increased from 10% to 30% with no cap, for systems installed in 2006 and 2007. With this increased benefit for commercial projects, the market for solar power is expected to substantially increase. Xantrex can provide a wide range of large scale solar grid-tie inverters from 10 kilowatts to 225 kilowatts to meet the needs of virtually any system size for projects pursued with this federal tax incentive. Xantrex has developed solutions for large scale commercial projects for many years, and is the market leader in this segment.
The energy policy also includes an extension of the production tax credit (PTC) for wind energy until December 2007. Xantrex was hoping for a longer renewal period to help stabilize the wind power market long-term. However, this two-year extension provides short-term incentives that Xantrex hopes will boost interest in wind power developments. Xantrex has converters for use with double fed 1.5 megawatt to full conversion 2.5 megawatt wind turbines currently available for developers wanting to take advantage of this tax credit.
"This bill benefits consumers, the environment, and innovative businesses like Xantrex, which focus on renewable energy systems," says Xantrex Chairman Mossadiq Umedaly. "This legislation will stimulate the market and new projects involving renewable energy, and Xantrex is well-positioned to help customers implement renewable power solutions that address these opportunities."
The energy bill also acknowledges the importance of anti-idling equipment for heavy-duty trucks to reduce fuel consumption and emissions. It stipulates that trucks equipped with idle-reduction technology can have an increased gross vehicle weight of 400 pounds.
For this market, Xantrex provides auxiliary power units for heavy duty trucks that work well with the initiatives included in the energy bill.
Anti-idling laws have been adopted in many US states in recent years, and now with this new federal energy bill, truck drivers can comply with anti-idling laws and still meet weight restrictions, while enjoying on-board appliances with Xantrex inverter/chargers.
All Xantrex Mobile OEM inverter/chargers weigh well below the 400 lb. exemption, including the Fleet Power 1000 HDT interior mounted inverter/charger, and the new RM1012 AL externally mounted unit, which is the most advanced inverter/charger in the heavy duty truck market. These products convert DC (battery) power into 120 volt AC (household) power in the vehicle cab to operate devices such as TVs, microwaves and computers, while significantly reducing idle time.
"Both the renewable energy market and the mobile power market stand to gain from this new legislation," says Mr. Umedaly. "We are excited about what the government incentives will mean for these markets in the years to come."
For more information on the energy bill and the potential impact on these markets, go to www.xantrex.com.
Xantrex Technology Inc. (www.xantrex.com) is a world leader in the development, manufacturing and marketing of advanced power electronic products and systems for the distributed, mobile and programmable power markets. The company's products convert raw electrical power from any central, distributed, or backup power source into high-quality power required by electronic and electrical equipment.
Note that this news release contains forward-looking statements related to Xantrex Technology Inc. Such statements reflect the current views of Xantrex with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in these forward-looking statements.
Cathy Gibson Epp
Xantrex Technology Inc.