NEW YORK, July 29 /PRNewswire-FirstCall/ -- Ezra Green, CEO of Clear Skies Solar, Inc. (OTC Bulletin Board: CSKH), a leading provider of turnkey solar electricity installations and renewable energy solutions, issues the following letter to the company's shareholders:

(Photo: http://www.newscom.com/cgi-bin/prnh/20090306/CSSLOGO )

Dear Fellow Shareholders:

Due to the stock market upheaval and credit drought of the past year, we would like to provide you with an update and perspective on the progress of Clear Skies Solar (CSS) to position itself as a successful, sustainable and dynamic solar energy provider.

Since the public launch of CSS in January 2008, we have been able to achieve the sales goals set forth in our business plan, with the exception of exceeding our sales targets for 2008. In July of 2008, CSS had a pipeline of commercial and utility scale projects of various sizes. Several of these projects were expected to close imminently, as written and verbal funding commitments had already been received.

Sales were approaching the $10 million mark in August of 2008, while active proposals exceeded $100 million at that time. Simultaneously, the credit markets started showing cracks in their foundation and the looming expiration of the federal Investment Tax Credit (ITC) began to give our funding partners concern.

Without a guaranteed ITC (a 30% federal tax credit), it would be difficult to receive investor funding on many projects. Due to this uncertainty regarding the ITC, all projects needed to be completed by December 31, 2008 or chance the forbearance of a tax credit equal to almost 1/3 of the project's cost. This risk made it nearly impossible to fund projects with expected completion dates approaching the end of 2008 or beyond.

The second problem was the complete freeze in capital for project financing and general financing for our clients. Without the availability of the credit markets, our clients had no way of closing on our contracts and CSS was no longer able to offer the Power Purchase Agreement (PPA) tool, which is a form of 3rd party financing that has driven the solar industry for years.

The issue of the ITC was resolved in October 2008 with the government voting to extend the incentive for 8 years, and now it appears that the credit markets are beginning to open up. CSS has weathered the worst of the storm and is reestablishing several financing vehicles from which our clients can choose from. Several projects are in the final stages of approval and we hope to start closing on them in the next several weeks, although there can be no assurance that this will happen. Unlike many companies that have been forced to file for bankruptcy or close their doors during these difficult times, we have been able to survive through a combination of cash reserves, liquidation of inventory and bridge financing.

By approaching the crisis organically whenever possible, CSS has been able to avoid the predatory or toxic lending that other firms have succumbed to, and more importantly, our doors have remained open and our pipeline has continued to develop domestically and abroad.

CSS has kept its management team intact and is now executing a new post-stock market crash business plan, which is more aggressive than the original outlook for the company.

We believe that we will become a larger and stronger entity, as we have several new strategic partnerships which we believe could establish us as a world class solar technology and integration company.

With renewed interest in solar energy, and an eagerness to take advantage of record low solar module prices, our clients are beginning to find life in the credit markets, and as previously stated, we hope to start closing on several contracts in the coming weeks.

We would like to reassure the investor community that we believe we are poised to gain substantial market share in the near future by delivering high quality solar projects throughout the expanding U.S. market. Please look for our upcoming announcements.

SOURCE Clear Skies Solar