Policy Options for the US Solar Market
Category: Solar Policy and Incentives
Solar energy accounts for not even one-quarter of one percent of total energy consumption in the US. By comparison, oil and natural gas each account for 30% of American energy consumption. As a new source of energy, solar energy needs the support of federal policy in order for its share in total energy consumption to grow. That is the only way that Americans are going to adopt solar energy and diversify our energy sources. At the moment, however, there are very few economic incentives in place to do so, and no federal policy on renewable energy. In this learning article, we outline five options that are available for creating a national renewable energy policy that would effectively push solar energy to become an important player in American energy supply. These incentives have been proven to work, as there are several countries, such as Germany, with successful solar energy markets that were created thanks to positive federal policies incorporating one or more of these economic incentives.