Incentives for solar energy in industry
Several issues are analyzed on the effects that government subsidies and other incentives have on the use of solar energy in industry, as well as on other capital-intensive alternative energy supplies. Discounted cash flow analysis is used to compare tax deductions for fuel expenses with tax credits for capital investments for energy. The result is a simple expression for tax equity. The effects that market penetration of solar energy has on conventional energy prices are analyzed with a free market model. It is shown that net costs of a subsidy program to the society can be significantly reduced by price. Several government loan guarantee concepts are evaluated as incentives that may not require direct outlays of government funds; their relative effectiveness in achieving loan leverage through project financing, and their cost and practicality, are discussed.
- Research Organization:
- Sandia National Labs., Albuquerque, NM (USA)
- DOE Contract Number:
- AC04-76DP00789
- OSTI ID:
- 6379368
- Report Number(s):
- SAND-81-0048
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
140300* -- Solar Energy-- Economic
Industrial
& Business Aspects
CSP
Concentrating Solar Power
ECONOMIC ANALYSIS
ECONOMICS
ENERGY
ENERGY SOURCES
FINANCIAL ASSISTANCE
FINANCIAL INCENTIVES
FINANCING
INDUSTRY
INSTITUTIONAL FACTORS
LOAN GUARANTEES
PRICES
RENEWABLE ENERGY SOURCES
SOLAR ENERGY
SUBSIDIES
TAXES