Electrical energy products manufacturer Xantrex Technology Inc., Burnaby BC, says its products and capabilities are well positioned to meet the needs of customers taking advantage of renewed and expanded alternative energy incentives created as a result of the recent passage in the US of the Energy Policy Act of 2005.

The US$12.3-billion legislation improves tax credits to alternative energy projects, which will provide a significant boost to the renewable energy market, the company says.

Xantrex has also made a normal course issuer bid to buy back some of its common shares. The bid has been accepted by the Toronto Stock Exchange (TSX).

Open market share purchases at prevailing prices may be made by the company during the 12 months ending August 21, 2006, aggregating the lesser of $10-million in cost or 10 percent of its public float, or until the company announces termination of the bid. Shares purchased will be cancelled.

The new US energy bill includes the first-ever federal tax credit for residential solar energy systems. The 30% credit can be claimed against personal income taxes, to a maximum credit of US$2,000 per project.

This is expected to strongly encourage homeowners and residential developers to consider solar power as a real option, Xantrex says.

The firm launched its GT 3.0 solar grid-tie inverter in October 2004, and says it has already become the fastest-growing residential unit of its kind in the solar market.

The US commercial solar tax credit has been increased from 10% to 30% with no cap, for systems installed in 2006 and 2007. With this increased benefit for commercial projects, the market for solar power is expected to substantially increase, Xantrex says. It provides a wide range of large scale solar grid-tie inverters, covering 10 to 225 kilowatts power levels.

The firm says it has developed products for large scale commercial projects for many years, and is the market leader in this segment.

The new US energy policy also includes an extension of the production tax credit (PTC) for wind energy until December 2007. Xantrex says it was hoping for a longer renewal period to help stabilize the wind power market long-term.

However, the two-year extension provides short-term incentives that it hopes will boost interest in wind power developments. It makes converters for use with double-fed 1.5 megawatt to full-conversion 2.5 megawatt wind turbines.

“This bill benefits consumers, the environment, and innovative businesses like Xantrex, which focus on renewable energy systems,” Xantrex Chairman Mossadiq Umedaly says. “This legislation will stimulate the market and new projects involving renewable energy, and Xantrex is well-positioned to help customers implement renewable power solutions that address these opportunities.”