Two Tucson solar companies appear to be ahead of others in their industry who’ve found themselves unable to capitalize on the federal government’s eight-year extension of a solar investment tax credit, which was due to expire in December.

The catch was the credit was in Congress’ $700 billion bailout legislation for the financial industry, the very reason some in the industry are finding themselves caught.

Many solar companies had put off expansion while extension of the solar tax credit was in limbo. But now that it has been extended, they’re finding they, like other industries, can’t get financing due to the credit crunch.

That’s not the case for Global Solar Energy, 8500 S. Rita Road, which moved into expanded facilities earlier this year and is alreading increasing production capacity to 40 megawatts per year, from four megawatts.

And Solon Corp. is expanding into new facilities capable of generating 80 megawatts of electricity per year when it reaches capacity. (Photos of the Solon plant are on page 4.)

"A lot of projects were on hold until we could see what happened with the tax credit," said Neil Shea, director of business development for Solon. "A lot of plans just wouldn’t pencil out without the ITC."

Passage of the tax credit includes a tax credit of 30 percent of the cost of installation of solar power generating equipment for homeowners, businesses and utility companies so it should help improve sales for Solon Corp.