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Assessing the impact of peak-load electricity pricing and the solar tax credits on the adoption of solar energy

Journal Article · · Land Econ.; (United States)
DOI:https://doi.org/10.2307/3146092· OSTI ID:7124357

An assessment of the impact of state and federal legislation on the development of residential solar energy considers the Energy Tax Act of 1978 and the Public Utility Regulatory Policies Act of 1978 in particular. A model estimates life-cycle cost for resistance electric heat, heat-pump, and active solar energy systems and assesses the impact of these costs of the federal solar tax credit, peak-load electricity pricing policies, and state property tax exemptions for solar systems. The study concludes that the peak pricing policy conserves capital resources but consumes nonrenewable energy, and would overwhelm the solar tax credit designed to promote use of renewable energy. If lawmakers intended to provide a major stimulus to solar energy in lieu of other options, the policy set needs to be reconsidered. 6 references, 5 tables.

Research Organization:
Purdue Univ., W. Lafayette, IN
OSTI ID:
7124357
Journal Information:
Land Econ.; (United States), Journal Name: Land Econ.; (United States) Vol. 60:1; ISSN LAECA
Country of Publication:
United States
Language:
English