Governments Of The World and Solar
How are different governments incentivizing the adoption of solar energy?
With the invention of solar panels, there came an immediate problem: the price people had to pay. People needed an incentive to gravitate towards solar if it was ever to achieve mass-market adoption.
Due to the rising concerns for renewable energy sources in an increasingly polluted world, governments attempted to help and push the solar industry in many ways. From tax benefits to government grants, these are how various governments around the world pushed for solar.
Solar in the U.S.
In the 1970s the U.S. was running into an energy crisis conveniently as solar energy began to become more affordable. However, since prices were still high, Congress wished to help alleviate the cost. As a result, they passed the Solar Energy Research, Development, and Demonstration Act. This act was committed to making “solar viable, affordable, and marketable to the public”.
Soon after this initial act, many more government-sponsored grants and tax benefits were created to further incentivize customers. This includes the successful Solar Investment Tax credit passed in 2006, which allowed solar customers to deduct 30% of the investment cost from their taxes (it would decrease in the years to come). There was also the Weatherization Assistance Program (WAP) which could pay up to $3,545 per residence for cost-effective renewable energy.
Today the U.S. continues to offer many grants and tax incentives that help alleviate the costs of solar panels. This is great if you are a future solar prospect!
Solar in Europe
Solar was big in Europe. Back in 2011, Europe led the solar cause worldwide with 69% of the world’s capacity at the time. Recently, they have shown no plans of slowing down.
The largest proponents of solar energy in Europe are Germany, Italy, the United Kingdom, France, and Spain. All of which have their own government-sponsored incentives to promote solar energy, such as the Renewable Energy Sources Act in Germany and “Conto Energia” tariffs in Italy. These programs provide the framework for solar growth in the country while providing financial incentives for the people who wish to buy solar panels.
Interestingly enough, while Italy and Germany have the largest quantity of solar power at their disposal, Spain is the leader in storing solar energy. Using concentrated solar power (CSP), Spain is the main proponent of solar storage in Europe, as other countries compose less than 0.01%.
Solar in Asia
China
China is the largest adopter of solar energy on the planet. Accounting for 32.6% of the world’s total solar PV capacity, it produces more energy than the U.S., Japan, and Germany combined!
As for Chinese Government Action, in 2011 a national feed-in tariff for solar projects was issued scraping off $0.15 per kWh. However, the cost is not much of an issue for solar power in China which is why they don’t have as many incentives as we do in the U.S.
Additionally, it is important to note that there was significant Chinese government action from 2012 to 2013. This was due to large losses incurred by PV manufacturers leading many of the leading companies to file for bankruptcy. As a result, the Chinese government created a comprehensive set of policies to stimulate the domestic market. Some of these policies called for the construction of large PV power plants across the country.
Japan
Japan is also one of the largest proponents of solar power in the world. It became a large national priority since the Fukushima Daiichi nuclear disaster in 2011. As a result, they have attempted to install solar throughout the country, resulting in their installed capacity to supply 7.6% of the country’s total energy usage, a larger percentage than any other country in the world.
To achieve these results, the Japanese government has created multiple feed-in tariffs to help subsidize costs. The latest of which was launched in 2017 and states that systems less than 10kW pay only 24 yen/kW and systems less than 10kW pay 24–28 yen/kW depending on circumstances. These low prices have allowed for the vast expansion of solar in Japan.
India
India is a very sunny country. With over 300 sunny days a year, their potential solar capacity far exceeds the possible energy output of all of India’s fossil fuels. As a result, the Indian government wants widespread integration of solar energy throughout India.
To help do this there are many incentives and missions put into play for the Indian government to achieve their goal. The National Solar Mission is a budget that encouraged private companies to reduce imports on solar panels by 5 percent resulting in the costs of rooftop solar-panels to decrease by 15–20%.
Additionally, solar PV tariffs have dropped the prices of solar cells in the country to a mere 1.31¢ per watt. Not only that there are also many incentives that help protect solar prospects from depreciation, reduce installation costs, and protect solar panel manufacturers.
Solar in Australia
Australia receives an average of 58 million PJ of solar radiation per year, meaning they receive 10,000x more energy from the sun than the country’s total energy consumption. This is more than any other continent in the world!
Up until recently, Australia has not used many solar systems throughout the country. However, in 2018 the government ramped up their Solar PV development and exponentially increased their solar capacity. To incentivize this change the Australian government has created the Clean Energy Initiative Solar Flagships Program to commit $1.5 billion to support the construction of four large-scale (large-scale meaning coal plant scale power) solar power plants in Australia.
Additionally, the government has offered rebates up to A$8,000 for installing solar on homes and community buildings and created feed-in tariffs which reduce the costs of solar systems per kW.
Conclusion
The world and subsequently the governments of the world are becoming increasingly aware of the potential solar energy has. From a past of solar energy neglect, we are globally moving towards a present and future of opportunity and growth. With a bright vision, the world has opened its eyes and solar energy seems to be the dominating energy of the future.
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