Enligsh 100

Ashley Epstein Professor Mai McMurray English 100 - 5303 June 20, 2024 Governmental Incentives and Subsidies Can Accelerate Solar Energy Use Introduction Maloney reports in an article by Forbes that, 80% of the total energy demand as of 2024 is met by hydrocarbons including oil, natural gas, and coal, with the remaining 20% from renewable and nuclear systems (Maloney). In his 2040 projection, he postulates that 60 percent of energy still comes from hydrocarbons (20% decline), mainly natural gas, and 40 percent from renewable and nuclear sources (20% increase), mostly wind and solar power. Even with hydrocarbons contributing to high energy, evidence shows that wind and solar power make up nearly 50% of new electricity generation capacity in the United States, which gives the US every reason to find ways to embrace solar energy not only because of its cost-effectiveness but also because of its environmental friendliness. Solar energy uptake remains low today due to many drawbacks including its expensive upfront costs, legal barriers, and inconsistent generation capacity (Bansal, Aditi, et al.). Governmental policies play a great role in the increased deployment of solar technology, decreased emissions of green gases, and the creation of incentives for producers and consumers to use green energy. Renewable Energy The Importance of Solar Energy Renewable energy is essential for a sustainable future due to its potential to reduce greenhouse gas emissions. Solar energy as a renewable energy is harnessed from the light produced by the sun. Solar power is tapped with the help of technologies like photovoltaic (PV) systems and solar thermal systems (Hini, Maha El, et al.). PV panels directly convert the sun’s rays into electricity, whereas solar thermal systems use sunlight for heating water as well as electricity generation. Solar power is one of the most replenishable sources of energy, meaning that it does not harm the environment and can be harnessed on large as well as on small scale. Solar energy offers both economic and environmental benefits including the ability to generate electricity without emitting greenhouse gases such as nitrogen oxides, carbon dioxide, or methane (Bansal, Aditi, et al.). Solar energy also promotes resource conservation and it is energy-independent. Government Incentives and Their Role US government has for the past few decades initiated energy transitions towards green and sustainable energy, but there is substantial evidence to show that more effort is still needed from the government to leverage more of the existing renewable energy, especially solar. Government incentives and subsidies play a pivotal role in promoting the adoption of renewable energy technologies. Government plays a role in promoting solar energy adoption through initiatives and subsidies such as the Solar Investment Tax Credit (ITC) where the federal government provides a tax credit to those who install solar energy systems in their homes or businesses, Net Metering Programs where states can allow those with solar power systems to sell power to the grid in proportion to their excess production; Rebates and Performance-Based Incentives; Renewable Energy Grants, and Federal Loan Programs (Yang and Nie; Rippy). One of the most effective governmental incentives in the USA in 2024 is the Solar investment tax credit. ITC is available to US homeowners and anyone owning but not leasing a solar panel system. ITC works on the model that once one installs a solar system worth about $20,000 they will owe 30% less on their federal tax returns, which is about $6000 less (Bansal, Aditi, et al.). Other appropriate options in pushing for solar energy adoption include grants and Net Metering Policies. Net metering policies have proved effective largely because they allow solar system energy producers to convert their excess energy into power bill credits, which means that they will receive value for all their solar energy generation (Davies and Sanya). Financial Accessibility Financial Accessibility of Solar Energy Government subsidies lower the financial barriers for consumers, making solar technology more accessible. Investopedia through their ranking of the most solar panel financial services ranks SunPower as a reliable financial. As Quoted, "SunPower Financial, one of the best for low-interest rates, offers access to solutions that make renewable energy an affordable option for more American low-income homeowners” (Frankel). Accordingly, affordable and reasonable interest rates on the loan help individuals and businesses to make a worthy investment in the use of solar technology. The affordable also lowers th...