Analysis Of Policy Design In Energy Conservation And Renewable Energy
This could be a major hurdle in the next legislative process for the package. The pro-business Free Democrats said their formal agreement on the package in the Cabinet is meant to start the process. However, deviations from the coalition agreement must be corrected in parliament, parliamentary group deputy leader Lucas Köhler wrote in a message on Twitter.
Central to the reform is the Renewable Energy Act a now 22-year-old law that enabled the share of renewable energy to rise to nearly 45 percent. Most importantly, the changes provide much higher capacity addition targets to meet the new governments goal of 80 percent renewable energy by 2030 and nearly 100 percent green power by 2035.
In light of the war in Ukraine and the urgent need to become independent from imported fossil fuels, the ministry has again increased these figures compared to the initial proposal from February 2022.
Australias New Government should Consider Renewable Electricity Storage Target Policy
To ensure that these ambitious growth scenarios are not hampered by lengthy planning processes, local opposition and conflicts with other protected objectives, the government has established the principle that the use of renewable energy is in the overall public interest and prioritizes other concerns, including greenhouse gas emissions. . Gas neutrality is achieved.
Njdep Air Quality, Energy & Sustainability
Power Policies, Challenges, And Recommendations Of Renewable Resource Assessment In Pakistan
State Programs And Practices
Many policies that advance the growth of solar energy are established at the state level. This can include state tax incentives for solar, which provide an additional tax benefit on top of the federal ITC. Other state policies, discussed below, can include:
- Renewable Portfolio Standards
- On-Bill Financing and repayment
Solar Energy In The United States
Solar power is more affordable, accessible, and prevalent in the United States than ever before. From just 0.34 GW in 2008, U.S. solar power capacity has grown to an estimated 97.2 gigawatts today. This is enough to power the equivalent of 18 million average American homes. Today, over 3% of U.S. electricity comes from solar energy in the form of solar photovoltaics and concentrating solar-thermal power .
Since 2014, the average cost of solar PV panels has dropped nearly 70%. Markets for solar energy are maturing rapidly around the country since solar electricity is now economically competitive with conventional energy sources in most states.
Solars abundance and potential throughout the United States is staggering: PV panels on just 22,000 square miles of the nations total land area about the size of Lake Michigan could supply enough electricity to power the entire United States. Solar panels can also be installed on rooftops with essentially no land use impacts, and it is projected that more than one in seven U.S. homes will have a rooftop solar PV system by 2030.
CSP is another method for capturing energy from the sun, with about 1.8 GW of capacity in the United States. The cost of electricity from CSP plants fell more than 50% from 2010 to 2020. If CSP cost reduction targets are met, studies show it could provide up to 158 GW of power to the U.S. by 2050.
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The Federal Energy Regulatory Commission
The Federal Energy Regulatory Commission is an independent agency that regulates the interstate transmission and distribution of oil, natural gas, and electricity.With regard to electricity, FERC focuses on wholesale power markets, market-based rates, demand response and advanced metering, electric reliability, transmission investment, transmission planning and cost allocations, and mergers and corporate transactions. FERC does not regulate retail electricity sales to customers or approve the construction of electric generation facilities, which are jurisdictional responsibilities largely handled at the state level.
Renewable Energy Projects In Tunisia Become More Feasible And Bankable
Dr Kevin Kariuki, AfDB vice-president of power, energy, climate and green growth: The 100MW Kairouan Solar PV Project will not only be a pioneer for other grid-based solar and wind independent power projects currently under development in Tunisia but also a benchmark for bankability of renewable energy projects in the country as it is underpinned by robust and sustainable agreements negotiated over the last three years under extremely onerous market conditions.
The Kairouan Solar project aligns with Tunisias Nationally Determined Contribution and goal of reducing carbon emissions through the transition to renewable energy sources. It is also consistent with the African Development Banks New Deal on Energy for Africa and the Light up and Power Africa High-5 strategic priority.
Of interestNew 10MW solar PV plant successfully commissioned in Tunisia
Wale Shonibare, AfDB director of energy financial solutions, policy and regulation: The success of the transaction, which has reached the highest bankability standards following months of negotiations with the Tunisian authorities, provides a useful template for future projects that will help move the country closer towards achieving the governments 35% clean energy target.
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Financing An Expanded Marketfor Renewables
Renewable technologies offer performance attributes that, at least at the outset, are not valued by a majority of existing customers. As disruptive technologies, renewables have largely been able to enter the electricity market because of direct and indirect subsidies driven by specific mandates , even though traditional electricity sources outperform non-hydropower renewables in terms of cost and availability. Figure 5-6 shows the growth of renewable energy sources in the United States and China from 1980 to 2009. Despite that growth, however, questions about long-term viability remain, particularly as both countries approach a material share of renewables in their power generation portfolios.
Public funds would be the most effective way to leverage private investment, but because of the nature of the electricity market, public funds will also
FIGURE 5-6 Power generation by source in the U.S. and China, 19802009. Sources: CEC, 2010 EIA, 2010b,d.
Suggested Citation:The Power of Renewables: Opportunities and Challenges for China and the United States
Closing Thoughts On Solar Energy
Clearly, solar energy will play a huge part in President Bidens ambition for a carbon-free grid by 2035 and a 100% clean energy economy by 2050, as well as his Build Back Better agenda. We have seen a few examples of the strong support the DOE gives to support research in the field, so we wish all concerned well in their endeavours to push solar energy in the U.S. forward.
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The Investment Tax Credit
The Solar Investment Tax Credit is a federal tax incentive enacted into law to encourage the deployment of solar energy in the United States. This federal tax credit is claimed against the tax liability of residential, commercial, and utility-scale investors in solar energy projects. When a homeowner purchases a residential solar energy system, the tax credit is applied against the homeowners personal income tax. For commercial and utility-scale projects, as well for residential projects owned by third parties, the tax credit is claimed by the business that owns the solar energy system.
The amount of the tax credit is determined based on the capital investment required to build a solar project. The credit provides a dollar-for-dollar reduction in the income taxes a person or company would otherwise pay to the federal government.
The solar ITC was first established in 2005 as a tax credit of 30 percent on eligible properties. Several legislative extensions have kept the ITC in place over the past two decades. The ITC was most recently extended in the Consolidated Appropriations Act enacted in 2020.
Currently, the ITC provides a 26 percent tax credit for projects that begin construction through 2022. In 2023, the ITC will step down to 22 percent. In 2024, the commercial and utility-scale tax credit will drop to 10 percent, while the residential credit will be eliminated.
Alternatives To Owning Solar
If purchasing your own solar energy system isnt an option, consider the following opportunities as a way to support solar and clean energy.
: An emerging option for the customers of several Minnesota electric utilities customers is joining a community solar garden, These solar photovoltaic systems provide electricity to participating subscribers. They are a way for people in Minnesota to get at least a portion of their power from solar electric systems without installing their own stand-alone project. The Clean Energy Resource Teams offers information on Community Solar Gardens.
Participate in a green pricing program. Green pricing is a voluntary option offered by some Minnesota electric utilities that allows you to support renewable energy beyond what your utility would otherwise be required to do. You usually pay a little more for your energy to cover the incremental cost of the additional wind or solar energy. Check with your utility to see if it offers green pricing.
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Solar Pv Has Gotten Cheaper At A Positively Ridiculous Rate
First, by way of background, its important to wrap your head around the remarkable evolution of solar PV. Again, solar module costs have dropped by around 99 percent over the past 40 years.
Suffice to say, those declines have continued since 2015, and market experts expect them to accelerate for the foreseeable future.
Solar PV has defied all projections, continuing to get cheaper and deploy faster even as experts predict, again and again, that it will level off.
2018 UPDATE of my series about @IEA versus reality in solar PVOnce again reality is steeply increasing and once again the IEA is having none of itDon’t these guys ever learn? This has been going on since 2002Seems their models simply can’t conceive of exponential growth
This headlong decline in costs is a baffling and amazing phenomenon. It demands explanation.
There have been many studies on the subject, of course, but most have relied on correlational analysis, tying the drop in PV costs to other ongoing trends. For instance, it is popular to point out, based in part on this paper, that PV costs drop by about 20 percent for every doubling of cumulative capacity .
There are also device-level studies that examine the components of PV systems, and their contribution to costs, at a snapshot in time.
Solar Energy Technologies Office
The Solar Energy Technologies Office is part of the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy and funds innovations in solar technologies. In its own words, SETO supports early-stage research and development in three technology areas: photovoltaics , concentrating solar-thermal power , and systems integration with the goal of improving the affordability, reliability, and domestic benefit of solar technologies on the grid. Funding from SETO supports all facets of the solar market, including improvements in the technical efficiencies of PV systems improvements in grid performance and reliability and the creation of new business models.
A sub-program within SETO works to lower the soft costs of going solar, which are the non-hardware costs that drive up the expense of installations. Local government processes in areas such as permitting, inspection, and planning and zoning can drive up solar soft costs. To reduce these costs, SETO provides networking and technical assistance, data analysis, business innovation, and training. One program funded by SETO isSolSmart, which provides official designation to local governments that reduce soft costs by addressing obstacles to solar energy development. SolSmart provides no-cost technical assistance to help communities achieve designation.
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Modified Accelerated Cost Recovery System
The Modified Accelerated Cost Recovery System is another federal tax policy that encourages solar energy deployment. MACRS is a common way to assess depreciation, which is a non-cash expense reflecting the fact that equipment is subject to wear and tear over time and will eventually need to be replaced.Therefore, taking a depreciation expense reduces the income subject to federal income taxes.
Under Section 168 of the tax code, equipment which uses solar energy to generate electricity qualifies for a five-year accelerated depreciation schedule. The value of MACRS to the owner of the solar energy project is a function of the owners tax rate. The higher the tax rate, the more valuable the MACRS deduction. When the solar ITC is claimed in conjunction with MACRS, the owner of the solar project must reduce the projects depreciable basis by one-half the value of the ITC.
Us Energy Information Administration
The U.S. Energy Information Administration is a non-partisan statistical agency within DOE that collects comprehensive U.S. energy data and prepares analyses, market forecasts, and long-term outlooks.The EIA surveys and collects data on a variety of energy markets, including petroleum, coal, and natural gas, as well as renewable energy sources including solar.
This data is accessible free of charge, making the EIA an important resource for local governments. The EIA provides several resources that are particularly useful, notably the State Energy Data System . The SEDS database contains a variety of state-specific data, including information on all types of energy consumption by source and sector energy production electricity generation and energy prices. The EIA also provides interactive maps that show the location of energy infrastructure. Additional information can be found in the Electric Power Annual, which includes monthly distributed solar data by state.
In addition, the EIA publishes an annual report, the Annual Energy Outlook, which makes projections on the future of national energy markets.This includes projections for the growth of both the utility-scale and distributed solar markets to 2040, based on current laws and policies. The EIA also releases short publications daily with updates on data trends.
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Forward View For Government Incentives Impact On Solar Power Growth
In December 2016, China reduced the FiT for utility scale plants by between 13-19%, , while leaving the existing distributed solar FiT unchanged. These adjustments are designed to incentivize market segmentation towards distributed generation, which is strong growth is projected to hit 5 GW in 2017. In addition, broader government priorities in China have an important role to play. One significant example is poverty alleviation a major priority for the Chinese government.
Solar power is widely known as the ideal means to bring electricity to rural areas. For that reason, the Chinese government has set a target of 5.5 GW of new solar energy generation specifically for poverty alleviation in 2017. One promising solar energy application in this regard is PV+, which essentially means the use of PV panels not just for solar power generation, but also to leverage solar structures to gain powerful secondary benefits.
For example, in China, crops, flowers and herbs that prefer shady environments are now being planted underneath solar power plants to maximize the use of the solar installation and the land. For that reason, PV + agriculture is becoming a trending tag in China. Turning our attention to the United States, the 2015 extension of the solar ITC is expected to encourage further reductions in solar prices at the same time as continued growth in installation rates and further technological efficiency gains.
Key references for this article:
Benefits Of Renewable Energy
Environmental and economic benefits of adding renewable energy to a state portfolio can include:
- Generating energy that produces no greenhouse gas emissions from fossil fuels and reduces some types of air pollution
- Diversifying energy supply and reducing dependence on imported fuels
- Creating economic development and jobs in manufacturing, installation, and more
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Fact Sheet: President Biden Takes Bold Executive Action To Spur Domestic Clean Energy Manufacturing
Historic Actions Include Authorizing Defense Production Act to Lower Energy Costs, Strengthen Power Grid, and Create Good-Paying Jobs
Todays clean energy technologies are a critical part of the arsenal we must harness to lower energy costs for families, reduce risks to our power grid, and tackle the urgent crisis of a changing climate. From day one, President Biden has mobilized investment in these critical technologies. Thanks to his clean energy and climate agenda, last year marked the largest deployment of solar, wind, and batteries in United States history, and our nation is now a magnet for investment in clean energy manufacturing.
Since President Biden took office, the private sector has committed over $100 billion in new private capital to make electric vehicles and batteries in the United States. We have made historic investments in clean hydrogen, nuclear, and other cutting-edge technologies. And companies are investing billions more to grow a new domestic offshore wind industry.
We are also now on track to triple domestic solar manufacturing capacity by 2024. The expansions to domestic solar manufacturing capacity announced since President Biden took office will grow the current base capacity of 7.5 gigawatts by an additional 15 gigawatts. This would total 22.5 gigawatts by the end of his first term enough to enable more than 3.3 million homes to switch to clean solar energy each year.
INVOKING THE DEFENSE PRODUCTION ACT FOR CLEAN ENERGY
Expanding The Investment Tax Credit For Offshore Wind
In addition to the three key policies described above, there is a fourth way that the tax code could be improved to boost renewable energy. For many years the technologies eligible for the PTC and ITC have remained unchanged. But theres no reason that new developments in renewable energy technology shouldnt be accounted for with modifications to the tax code. Most importantly Congress should place technologies within the PTC or ITC depending on the unique characteristics of each technology and their specific capital investment needs.
The offshore wind industry is poised to take off in the waters off of Americas East Coast. Unfortunately, as Michael Conathan and I wrote in Clean Energy from Americas Oceans,More than 40,000 megawatts of offshore wind energy capacity have been permitted around the globe, yet the United States accounts for barely 1 percent of that, and we have yet to generate our first watt of electricity from this abundant, carbon-free source of power.
Theres no shortage of interest in building offshore wind farms and several projects are moving forward with permitting and siting. The right government investment can provide critical support for leveraging private capital investment in these projects to accelerate the growth of this new American industry.
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