Solar energy is one of the most feasible renewable energy options. As this realization becomes more apparent, more people are investing in solar.
But what does the government have to do with it all?
We’re celebrating Presidents’ Day and highlighting some presidents who have made progress for renewable energy.
PRESIDENTIAL ADVOCATES – RENEWABLE ENERGY
Certain presidents stand out when it comes about advocating for alternate energy sources.
President Jimmy Carter is the most notable. President Jimmy Carter was a strong advocate for renewable energy during his presidency. He even went as far as to install 32 solar cells in the White House during the 1979’s oil crisis.
George W. Bush, four years later, was the first president to put solar panels on the White House grounds. Unfortunately, Carter’s had to be removed. Bush owned three solar systems: a 167-panel solar system on the maintenance building roof and two solar water heaters.
In 2014, President Barack Obama built more solar panels during his tenure in the Oval Office. This is logical since he was a strong advocate for clean energy policies. These solar arrays could be used for a long time thanks to his two-term presidency.
Another standout is President Biden. First, Biden lowered tariffs on solar imports by 14% to 15%. Because most panels aren’t manufactured or assembled in America, this reduction makes it easier for Americans to go green.
Solar panel availability increases because it is cheaper to import solar equipment. This makes it easier (and cheaper) for Americans to buy and use solar panels.
U.S. POLICIES SUPPORTING RENEWABLE ENERGY
States has adopted various policies to support, accommodate and facilitate going Solar (and other renewable energy technologies) across the country.
Here are the locations Freedom Solar serves.
FINANCIAL INCENTIVES
Many solar incentives include tax credits, rebates, grants, loans, and tax credits. Many states offer these incentives to encourage the purchase, generation, and use of solar energy, as well as other renewable sources.
The most well-known incentive is the federal solar tax credit (ITC). At tax time, solar customers get a 30% tax credit.
This percentage results from the extension and expansion that the Inflation Reduction Act enacted by the Biden administration. This will be discussed again later.
RENEWABLE PORTFOLIO STANDARD (RPS).
The RPS mandates that electric utilities and other retail electric suppliers give customers a certain amount or percentage of power from renewable sources.
Additional policy details can be found in Chapter 5 of the Environmental Protection Agency’s Energy and Environment Guide to Action.
PUBLIC BENEFITS FUNDS – RENEWABLE ENERGY
All states can use these public renewable energy funds in the country. These funds are intended to help states invest in clean energy projects and encourage them to be done.
The funds are derived from a small fee utilities charge customers for electricity, also known as a system benefits charge.
For more information, see the Electric Utility Regulatory Frameworks and Financial Incentives chapter in the EPA’s State Energy and Environment Guide to Action.
ENVIRONMENTAL REGULATIONS BASED ON OUTPUT
These regulations limit emissions, specifically for units of produced and used energy. These regulations apply to electricity, thermal, and other energy sources.
The primary purpose of the regulations is to promote renewable energy and the conversion of efficient fuels to lower levels of greenhouse gases in the atmosphere (aka, air pollutants).
You can find more information in chapter 6 of the EPA Energy and Environment Guide to Action Policy Considerations For Combined Heat and Power.
STANDARDS FOR INTERCONNECTION
Interconnection standards are processes that govern how utilities deal with renewable energy and how it connects to the grid.
Standard procedures reduce delays and help to clarify how systems connect with the grid. The standards may dictate how a solar-panel system connects with the grid and contributes towards the state’s electricity supply.
NET METERING
This one is familiar to you. Net Metering is an excellent resource for homeowners and business owners with solar panels.
Solar owners may be eligible for compensation for excess electricity generated by their solar PV systems. Every state has its own net metering rules. This includes tracking how much solar power customers use at home and sending it to the grid.
If a solar PV system isn’t producing enough energy to power a property, an electric customer can source point from the grid. They can then use their accumulated solar credits from net Metering to buy energy from the grid.
FEED-IN TARIFS
These tariffs encourage utilities to produce renewable energy. How do you achieve this? Electric utilities must pay higher rates than the market for renewable energy under feed-in tariffs. That energy is then sent to the grid.
Tariffs provide steady income for those who produce renewable energy. They are based on the clean power project. The tariffs are dependent on the energy resource.
Do you need more information? Details are available in An Analysis Of Renewable Energy Feed In Tariffs in The United States Project .
PROPERTY ASSESSED CLEANENERGY (PACE).
PACE is the only option to finance home-solar installations.
PACE encourages homeowners also to invest in solar power systems and renewable energy improvements, making it easier for them to repay their costs.
Here’s more information about the PACE programs offered by states and governments.
HOW THE IRA BENEFITS SOLAR OWNERS
President Joe Biden approved the IRA on August 16, 2022.
The new act provides tax incentives to clean energy projects with a better set of provisions. One of the improvements was made to the solar ITC. This included its expansion and extension.
The current solar ITC is 30%. It is available for all solar, wind and other clean energy projects beginning construction or installation prior to December 31, 2025.
The IRA also includes benefits for electric car (EV) owners. An EV owner can charge it using a solar-powered charging station. If you are looking to buy an EV, there is a $6,000 tax credit available.