Planning for Phasing Out Incentives

Planning for Phasing Out Incentives

The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/planning-phasing-incentives/

Federal Subsidies
Over the next decade, solar electricity will let consumers get cheaper energy from their rooftop than from their utility. Among the upheaval in the electricity system, the coming of solar “grid parity” means re-thinking incentives for solar energy.

The success of solar is remarkable, no less because the amount of federal subsidy in absolute terms has been far less for renewable energy than for fossil fuel resources (see graphic below).1 As the cost of solar drops toward – and below – grid parity, the question is how to adjust solar subsidies appropriately. Should they be eliminated immediately? Phased out? Or shifted from reducing the upfront cost to some other solar-boosting strategy?

This is the fifth of five parts of our Rooftop Revolution report being published in serial.  Read Part 1 or Part 2 or Part 3 or Part 4. Download the entire report and see our other resources here.

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