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The credit crunch has stalled new solar power installations, but the economic stimulus act could lead to a more widespread use of the technology.

The payoff could be a nearly limitless source of energy.

Countries that switch to renewable resources such as solar energy will lead the world in this century, President Barack Obama promised Americans Tuesday night in his state of the nation address. 

A provision of Obama’s stimulus package will offer grants for the installation of new solar panels.

“We invented solar technology, but we’ve fallen behind countries like Japan and Germany in producing it,” Obama said.

“Right now we don’t even get one tenth of one percent of electricity or heating from solar,” said Mark Burger, president of the Illinois Solar Energy Association. Burger said the U.S. could replace one percent of its total energy consumption with solar energy each year using existing technology.

The short-term boost will come from people buying solar panels that are already made, Burger said. He said the stimulus package would lead to more installations and jobs.

“Every megawatt you install, from beginning to end, [needs] about 25 to 30 jobs, about half of which are at the installation end,” Burger said. He said that if the U.S.’s solar panel industry takes off in the next year, it should be larger than Germany’s or Japan’s.

“We’re looking to expand and grow and hire people,” said Gary Schweikhofer, owner of the Addison-based solar installation business SunHeat Solar Inc. “We will help the economy with people working.”

He said he expects to see the U.S.’s solar energy industry expand because of the stimulus act and expects to see more business in the coming year.

The growth in the solar energy market is giving impetus to plumbers, roofers and general contractors to add solar installations to their businesses.

“Their [core] business is terrible and they realize they can do solar,” Burger said.

Many energy consumers want to make the switch to solar energy, yet they need an incentive to purchase costly solar panels. While installing solar panels can be expensive, they pay for themselves in the long run.

“It’s all about return on investment,” Schweikhofer said.

The federal government has offered a 30 percent tax credit for property owners who install solar power. This meant the cost of the installation is paid back more quickly. Grant money from the stimulus package is meant to replace the tax credit.

The state has incentives beyond federal grants and tax credits.

“Illinois is leading the way in renewable energy for states,” Schweikhofer said. “Illinois has a state rebate program for 30 percent of installation costs on top of the federal tax credit.”