California utility company PG&E said Tuesday it plans to develop 500 megawatts of solar power, its largest-ever plan to build and invest in ground- and rooftop-mounted solar energy generation systems. The company plans to spend about $1.4 billion on the project and hopes the solar generation could serve up to 150,000 homes.

Prompted by changes to federal tax law last fall, PG&E is taking advantage of tax credits for renewable energy development that were previously unavailable.

“This program represents an unprecedented commitment of our capital and expertise to speed the delivery of clean, renewable energy to our customers,” said PG&E Chairman and Chief Executive Peter Darbee.

PG&E said it would develop and own 250 megawatts of its own solar-generation capacity, mostly using ground-mounted solar panels. PG&E will also be investing in photovoltaics, which directly convert light into electricity.

With 2008 being a bust financially, many industries are putting their faith in the new economic stimulus plan, which will hopefully resuscitate the economy.

Now, things are looking bright for the solar and wind power industries, as news that the U.S. government is set to spend nearly $100 billion to push America’s energy industry and make solar power part of its energy stimulus. The stimulus package apparently contains tax incentives for solar installation as well as incentives for job creation in solar energy companies.

“We are excited to see the push to drive investment in solar energy at the top of American agenda,” Eddie Austin, Chairman and CEO of Sunrise Solar Corp, said. “Experts expect this to stimulate rapid growth in solar power as consumers and businesses see these grants and tax credits as a great opportunity to go green on a budget.”

Solar companies are scrambling to produce and build more technology in order to accommodate a demand that will most likely become massive.

Rep. Mike Thompson, of Montana, stated, “The solar energy tax provisions I authored will make it easier for businesses and homeowners to have solar panels installed. This has the twin benefits of creating green jobs while at the same time reducing our dependence on foreign oil.”

With the solar power industry looking down the barrel of a tough 2009 it definitely has high hopes for Barack Obama’s economic stimulus package. The question is, what exactly can the solar power industry expect to receive?

Considering President Obama’s long-term energy plans involve seeing solar energy production doubled, you can expect to see a serious solar power booster shot.

Currently, both the Senate and the house are each entertaining a package for the solar power industry. It is possible that both will be approved.

The house bill would prove invaluable to the solar industry. It would see those who purchase solar panels get refunds in the form of grants as opposed to tax credits for their purchase. The tax credits were a great incentive back when companies were healthy and flush with cash and making so much that write offs were actually valuable. Now investments need to pay and a simple tax credit is no longer much of an incentive.

The Senate bill targets manufacturing as opposed to purchasing. It would exist in the form of a tax credit for solar power technology manufacturers and keep U.S. companies competitive.

Here’s to hoping that both incentives see the light of day. This could be a major turning point for the solar industry in the U.S. and with the right stimulus we could see solar power and other forms of renewable energy take their rightful place in the forefront of energy production.

Residential solar power systems might be an affordable option for more homeowners now as SunRun has released two flexible payment options: SunRun Total Solar and SunRun Power Plan.

For those considering buying solar panels but couldn’t manage the upfront costs the Power Plan allows purchasers to pay $2,000 plus financing options that involve a fixed rate for the solar power.

The Total Solar plan sees customers pay for everything upfront. This doesn’t involve ownership of the solar panels but the customers still receive the of the 30% Federal Tax Credit immediately upon purchase as opposed to getting it a year later.

Maryland and Connecticut are struggling with budget shortfulls for solar power programs that have run out of money early.

Maryland is out of cash when it comes to funding a popular program that provided aid to home or business owners who installed solar energy systems.

State’s solar incentives offer help to subsidize the cost of buying and installing a solar power system for home and business owners, which could cost tens of thousands of dollars for a home. These programs have become popular not only among citizens, but among state and local governments trying to promote clean energy production. However with the ever-flailing econonmy, Maryland is having trouble continuing to fund these programs.

Meanwhile, the New York Times reports that Connecticut is struggling to find money for a solar rebate program.

“We won’t know what we will have available [for solar rebates] for the next several months,” Donna Tommelleo, a spokeswoman for Connecticut Gov. Jodi Rell, said Tuesday. “Like every other state, everybody is hurting.”

Rather than rebates, some local governments are looking at alternative solar power incentives. California, for example, has net metering programs in place that allow solar energy system owners that generate more power than they can use to feed the excess power back into the grid – a deduction they will enjoy on their future electricity bills.