Saturday, January 16, 2010

Why Do Governmment and Electric Companies Supplement Solar Installations?

The benefits of solar and other renewable energy from the point of view of the United States and Arizona governments are many. Following are the reasons why they offer federal and state tax credits to supplement the cost of solar installations, and why Arizona passed a law that caused the electric utility companies to offer incentives.
Energy Security- Americans are too dependent on foreign oil. Politics, war and other events beyond our control can cause scarcity or temporary shortages of oil. The prices of oil and natural gas are constantly fluctuating, going up more than down. Oil, natural gas and even coal are finite natural resources. Large power plants are dependent on infrastructure, especially power transmission lines. The sun is expected to keep on producing energy for billions of years, and you can have a solar system producing electricity on your own roof or backyard.
Environmental Protection-40% of US carbon emissions come from electricity production. Power plants that burn fossil fuels also produce other pollutants-sulfur dioxide emissions, nitrogen oxide emissions, particulate matter emissions, and more. These pollutants, especially carbon dioxide, contribute to increased greenhouse gases in the atmosphere, and possibly global warming. Solar Systems do not pollute. Also, nuclear and fossil fuel burning power plants, particularly coal burning plants, account for 39% of the fresh water consumption in the United States, 190 million gallons per day. Water is becoming ever scarcer, particularly in the western United States. Solar Electric systems don't use any water.
Economic Revitalization-Installing solar and other renewable energy systems creates jobs-in construction and manufacturing, sorely needed considering the state of the economy.

By state law in Arizona, utility companies subject to the state's Renewable Energy Standard must obtain Renewable Energy Credits (RECs) to meet 15% of their retail electric load by 2025 and thereafter. Solar systems are a source of RECs, and customers who receive rebates or performance based incentives from their electric utility must in turn assign their RECs to the utility for a period of time, often 20 years.
Our next post will explain the rebates and other incentives offered by the larger electric utilities in Arizona.

No comments:

Post a Comment