Solar Subsidies [RE-wrenches]

Graham Owen graham at solarexpert.com
Sat Nov 16 16:36:15 PST 2002


Matthew Tritt wrote: “our product will only be
truly affordable to buyers with higher than average incomes until 
government decides to subsidize it nationally”

Matt, I think you hit the nail on the head here.  Solar needs to become 
subsidized nationally to greatly increase economies of scale.  The 
problem is figuring out how to make these subsidies provide the most 
benefit to the consumer without creating avenues of financial temptation 
and shenanigans by contractors.  I also believe that a percentage of 
solar energy system subsidies should be calculated and paid for the 
energy they actually produce.

I believe there is concern with lawmakers, that it is beginning to 
appear that low-income ratepayers struggling to pay their electric bills 
are subsidizing solar power to reduce energy bills for the affluent, who 
are most able to pay their bills.  As an industry what we really need to 
focus on how to make PV affordable for low-income families.  When this 
is achieved PV will truly be a mainstream product.  Zero interest loans 
and targeted government assistance is necessary.  One possible scenario 
would be to have the IRS allow 30-cents per kWh’s generated annually to 
become deductible from income taxes.  This would keep the solar money 
and monitoring out of the hands of the utilities.  A Zero interest 
government loan for 20 years, with the first payment deferred for one 
year, combined with 30 cents per kWh tax deduction would work 
financially.  A program such as this would require a long-term 
government commitment; say 20 years, to truly change our energy mix.  
Homes with money generating devices on the roof will be easy to sell.  
Now you may ask, could our federal government possibly make such a 
long-term energy subsidy commitment?  It is possible.

I just read a very interesting article in the latest World Energy 
magazine, Volume 5 Number 3, written by Frank Murkowski, U.S. Senate, 
Alaska.  On page 85 he lays out a plan for a 15-year subsidy for a 
natural gas pipeline to the lower 48 from Alaska.  I tried to find the 
article on line to give you a link but a password is needed to read the 
article.  This is an excellent magazine.  I will paste the link below 
but I don’t think you can open the article.

http://www.worldenergysource.com/articles/articledetail.cfm?the_start=1&sortby=last&keyword=Frank&title=&country=&business=&mymax=10&volume=&id=399&auth_id=99&language=E


Graham Owen
GO Solar Company

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