By Scott Moritz

Solar tech stocks got a small jolt Wednesday after the U.S. Senate included an extension of renewable energy tax credits in its $700 billion financial bailout package.

A vote by the Senate on the financial rescue plan is expected Wednesday. If passed it will head to the House of Representatives, which could vote as early as Thursday. In a surprise move, the Senate version of the proposed package salvages key renewable energy subsidies left in limbo by the House last week.

“It was thought that this thing was likely dead until a new president was sworn in,” says Collins Stewart analyst Dan Ries, referring to the investment tax credit, or ITC.

Senate leaders included in the bailout bill extensions of the renewable energy investment and production tax credits that expire at the end of the year. “The legislation also includes alternative minimum tax relief and an increase of the FDIC insurance cap to $250,000; measures that will help the bill gain support with House members,” Ries wrote in a research note.

Solar stocks have had a particularly rocky week as uncertainty over whether the tax credits would be extended has left hanging billions of dollars in solar and wind projects in the pipeline.

“Today’s ITC development is certainly an unexpected positive catalyst, Barclays analyst Vishal Shah wrote Wednesday.

The Senate bill extends for three years the production tax credit crucial to the wind industry as well as grants an eight-year extension of the 30% investment tax credit for solar projects.

Solar wafer maker LDK Solar (LDK) rose 10% in midday trading Wednesday but is still down 36% in the past month. Similarly, solar cell manufacturer, JA Solar (JASO) was up 11% but still 34% down in the past 30 days. Silicon Valley solar module make SunPower (SPWRA) was up nearly 9% Wednesday.

While far from a done deal, Collins Stewart’s Ries is optimistic that the credit crisis has lawmakers in a conciliatory mood. “House and Senate have bounced different versions of solar bills back and forth over the past two weeks,” he says. “Given the urgency of the bailout plan, we believe there will be pressure to keep changes to this large package of legislation to a minimum.”

“There’s a ray of hope,” Ries added. “I’d give it a better than 50% chance of passing.”

By Yi-Wyn Yen

LAS VEGAS – GM CEO Rick Wagoner announced his arrival at the Consumer Electronics Show Tuesday night by rolling up in a silver Chevy Volt. But it was another concept car that Wagoner introduced during his keynote speech that wowed the crowd — the electric-fuel cell hybrid Cadillac Provoq.

In hopes of changing negative perceptions about big American car makers, Wagoner — the first automotive chief executive to speak at CES — used his hour-long presentation to highlight GM’s vision for greener, safer, smarter cars.

Wagoner unveiled the silver Provoq, a zero-emissions protoype designed to have a 300-mile range by using a hydrogen fuel cell to charge a lithium ion battery pack. The car can be charged on a home electrical outlet and its roof sports solar panels to extend battery life. Wagoner did not say when the concept car would go into production, but GM (GM) hopes to deliver fuel-cell cars in three to four years. “With oil hitting $100 a barrel last week… the auto industry can no longer rely exclusively on oil,” he said.

GM is aggressively pushing to change its gas-guzzling image by introducing eight hybrids this year, including the Chevy Tahoe and GMC Yukon SUVs. The Chevy Volt, a battery-powered car whose range is boosted by a small engine that runs on a range of fuels, was unveiled at an auto show last year and is expected to hit showrooms around 2010. Wagoner said GM will continue to push for ethanol-based cars and expects to increase production of energy-efficient cars by 50 percent in the next four years.

Further into the future, Wagoner said he hopes cars will be smart enough to drive themselves. He highlighted a video of a self-driving Chevy Tahoe nicknamed “the Boss” that won a 60-mile DARPA race last year. The Boss will be on display starting Wednesday outside the Las Vegas Convention Center. “Someday you can do your e-mail, watch a video, apply your makeup while commuting to work. You can do all that right now, but imagine if you can do it safely,” Wagoner said.

While self-driving cars may be a thing of the future, car owners won’t have to wait long for car doors that can be locked with with cell phones and for cars that put on the brakes when stolen. GM revamped its 12-year-old OnStar safety and alarm system to slow down a stolen car when it’s being chased by the police. It is also working with Verizon (VZ), Qualcomm (QCOM), and LG on mobile phones that can activate car alarms, lock doors and download driving directions. Said Wagoner: “This has been a massive learning experience for us of understanding where and how the auto and electronic industry intersects.”