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While many sectors of the economy are anticipating the worst over the next few months, the solar industry is looking at a brighter future.

Due to new federal legislation that extends for eight years the 30 percent tax credit that homeowners and businesses receive for installing solar equipment and removes the $2,000 cap on this credit, solar companies can enjoy greater confidence, say those in the industry.

The renewal was part of the recent $700 billion financial bailout package. For the first time, the law also allows utilities to take the tax credit directly and permits people with incomes meeting the alternative minimum tax standards to take the credit, too.

"With the coming green-collar economy, people are starting to see broader opportunities among the green market," said Richard E. Deutschmann, president of Chesapeake Solar in Jessup and vice president for policy and market development for parent company groSolar.

Deutschmann said the company, which employs more than 120 people, generated about $2.5 million in revenues last year and expects to double that this year and double it again in fiscal 2009.

SunEdison, a Beltsville company with more than 480 employees globally, has been tapping into the increased interest in solar energy with its City Tour for Solar. The 100-day nationwide tour, which started in August, will visit 50 cities in the West to teach municipalities about solar energy. Other tour partners are Evergreen Solar, SMA America, Uni-Solar and Xantrex Technology.

"People in leadership positions are starting to look seriously at how the U.S. combats climate change. We're going to lead a national effort to take the message that solar is ready," said Kris Nichols, SunEdison's senior marketing manager and also manager of the City Tour for Solar.

Globally, the solar market generates more than $33.4 billion in revenues, according to a report from Lux Research of New York. That's expected to reach $100 billion by 2013.

The new tax credit renewal could unleash $325 billion in private investment by 2016 and more than 440,000 permanent U.S. jobs, said Monique Hanis, spokeswoman for the Solar Energy Industries Association.

Nichols emphasized that when areas have greater capacity for solar energy manufacturing, the process becomes less expensive and accelerates the entire industry. She said that while the resources are available, regulations still have to be enacted, which is the point of targeting the tour at local governments.

SunEdison also has a five-year, 800-megawatt development agreement with Q-Cells International USA Corp., a subsidiary of Q-Cells AG — the largest manufacturer of solar cells worldwide — to jointly develop and operate solar power systems in North America.

Hanis said that systems capable of generating a total of more than 28,000 megawatts nationwide could be installed by 2016.

Even before the new tax break, SunEdison had landed a General Motors contract to install a 1.2-megawatt solar power array to the roof of GM's transmission assembly plant in White Marsh.

Another major solar project was announced this week. Spice-making giant McCormick & Co. of Sparks has contracted with a subsidiary of Constellation Energy to construct a 1-megawatt solar system at its spice mill and distribution center in Hunt Valley.

Standard Solar Inc. of Gaithersburg, meanwhile, this month benefited from the heightened interest in solar energy. The company landed an $8.5 million investment round from several private and institutional investors led by Truecast Capital of Middleburg, Va.

"This new funding could not have come at a better time," president and CEO Anthony Clifford said in a statement. "It allows us to take immediate advantage of the historic solar tax credit legislation just passed by Congress and signed into law by President Bush."

Maryland has more than 22 solar-related companies, according to the MDV — Solar Energy Industry Association.

"We're so busy; it's a mixed blessing," said Roger Perry, president of Solar Energy Services in Pasadena. "People just want to do green; they want to do positive things for the environment."

Perry said Solar Energy Services, which employs five people and focuses on thermal heating, has annual revenues of $1 million, mostly in residential sales, and expects to double its profits this year.

But the Lux report also warned that supply will exceed demand in 2009, causing price and revenue decreases and posing challenges to providers without differentiated technology.

Fearing oncoming competition, BP Solar in Frederick halted its $97 million expansion and decided against spending $67 million in manufacturing equipment to expand production capacity. Instead, the company will use the new space for offices.

Isaac Opalinsky, sales manager at Aurora Energy in Columbia, said some in the industry are concerned that the booming market may pull in contractors from less successful markets. He said the commercial market continues to drive demand.

"The [credit extension] took a lot of uncertainty out of the market. It's one thing to have incentives; it's another to know those incentives will be there," he said.

Aurora Energy, with 11 employees, caters primarily to the high-end residential market. Its sales increased 50 percent from last year, Opalinsky said.

"Solar energy provides a unique opportunity to site clean and renewable energy," Deutschmann said. "It's a win-win for everyone."