Subsidizing solar energy: the role of tax credits, loans, and warranties

Technical Report · Wed Mar 01 04:00:00 EST 1978

DOI:https://doi.org/10.2172/6867633· OSTI ID:6867633

Berman, S M; Fisher, A C

It is generally agreed that solar energy is an appropriate technology. It is further agreed that its use ought to be subsidized by appropriate governmental action. There is not, however, a consensus as to just why solar energy is desirable, or what constitutes appropriate action. In this paper some arguments are considered for a subsidy and are related to a specific proposal. First, some of the arguments that have been advanced in favor of subsidizing solar energy are reviewed. Next, an additional argument, which seems to offer a strong rationale for a subsidy of a somewhat unconventional sort--a government-backed service warranty--is proposed. Then the argument for the warranty is presented, along with an argument for a subsidy to overcome high front-end costs. Finally, some estimates of the budget costs of a warranty program are presented.

• Research Organization: California Univ., Berkeley (USA). Lawrence Berkeley Lab.
• DOE Contract Number: W-7405-ENG-48
• OSTI ID: 6867633
• Report Number(s): LBL-7805
• Country of Publication: United States
• Language: English

Related Subjects

14 SOLAR ENERGY
140300 -- Solar Energy-- Economic
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
299001* -- Energy Planning & Policy-- Solar-- (1989-)
BUDGETS
ENERGY
ENERGY SOURCES
FEASIBILITY STUDIES
FEDERAL ASSISTANCE PROGRAMS
FINANCIAL INCENTIVES
RENEWABLE ENERGY SOURCES
SOLAR ENERGY