Federal tax credits that cover up to 30% of the cost of installing solar electric systems for businesses and up to $2000 for residential installations are set to expire on December 31st.

According to the Sacramento Business Journal [1], companies in the industry are concerned about new business next year, and some are looking overseas. :

"Everybody’s making contingency plans," said Steve Kircher, chief executive officer of Solar Power Inc. in Roseville. "I think you’re going to see cutbacks and layoffs in the construction industry. We’re not out soliciting new business."

A bill to renew the credits is stalled in Congress.