It is possible for the state to get as much as 14 percent of its electricity from solar power in the next 20 years, creating 28,000 jobs, according to a report from the research arm of Environment North Carolina.

"Everyone knows solar energy is clean," said Elizabeth Ouzts, the organization's state director. "There has never been a solar spill." Expanding solar energy use can create jobs "right here that cannot be outsourced," she said.

But solar energy advocates and business leaders feel the North Carolina isn't doing enough to boost the renewable energy industry.

State politicians have trumpeted the possibilities of expanding the "green economy" to produce jobs and energy that does not rely on fossil fuels. Policy changes, including a 2007 law requiring power companies to use more renewable energy, have been made.

Gov. Bev Perdue talks often about "green jobs" and using the federal stimulus money to increase employment in renewable energy industries. And, she appointed an N.C. Energy Policy Council to help lay out a long-term energy strategy that will likely emphasize sustainable energy.

Still, advocates want to see more and see it sooner.

Reinstating a tax credit for renewable energy manufacturers would be considered a start. The credit was allowed to expire in 2006, because it wasn't being used.

The budget approved by the state Senate includes a 25 percent credit equal to the cost of building and outfitting a renewable energy factory. But fewer than a dozen companies are expected to use the credit. Many of the state's solar manufacturers are startup companies that won't benefit from a tax credit because they aren't making profits.

"We're still consuming cash as opposed to spending cash," said Joe Carr, CEO of Semprius, a company in Research Triangle Park that is developing a new type of high-efficiency solar cell.

Other states have incentives, including grants, that are of greater benefit to startup companies, he said.

Richard Harkrader, CEO of Carolina Solar Energy, said a revolving loan fund for sustainable energy companies would help. The fund, originally proposed for $18 million but reduced to $5 million, is to be paid for with stimulus money.

But questions about rules for how the fund should work have delayed any actual loan-making, according to the state Energy Office. If the state cannot get the proper approvals, the money will go to other programs in its energy plan. Most of the money that was proposed for revolving loans has already gone to other energy projects.

The state is waiting for a federal review of its decisions on who will get money from a Green Business Fund, and the state has not yet announced the recipients of $2.3 million in grants for commercial renewable energy and biofuels projects.

Energy Policy Council Chairman Tim Toben said the state also could do other things to encourage use of solar power. It should be easier for small electricity producers - for example, farmers who use solar energy - to connect to the power grid and get credit from utility companies, he said.

lynn.bonner@newsobserver.com  or 919-829-4821

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