Solar energy is a viable source of renewable energy. As more people become aware of this, they are investing more in solar.
What’s the role of government in all this?
We’ll be highlighting some of the presidents who have made significant contributions to renewable energy. We’ll also discuss the role played by the government in creating policies and incentives for solar power, which support the growth of the solar industry.
[Related to Solar Energy 101 – The Benefits of Solar Power ]
PRESIDENTIAL ADVOCATES OF RENEWABLE ENERGY
Some presidents stand out for their advocacy of alternative energy sources.
Jimmy Carter is the most notable. During his tenure as president, he pushed for a greater use of renewable energies. He even went as far as installing 32 panels on the White House in 1979 during the oil crisis.
George W. Bush, four presidents after Carter, was the first to install solar panels at the White House (Reagan, regrettably, removed the ones Carter had installed). Bush installed three solar systems, including a 167-panel system on the roof of the maintenance building and two solar water heaters.
In 2014, Barack Obama installed a larger array of solar panels during his tenure in the Oval Office. It makes sense since he was a regular advocate for clean energy policies. These solar arrays were put to good use during his two terms as president.
Biden’s performance is also noteworthy. Biden first reduced solar import tariffs by 30% to between 14 and 15%. This makes it easier for Americans who want to go solar, as most panels aren’t manufactured or assembled in the U.S.
Solar panels are now more affordable because importation is cheaper. It is, therefore, much easier (and cheaper) for Americans to buy and use solar panels.
[Related to Solar Panel Maintenance & Repair Services]
U.S. POLICIES TO SUPPORT RENEWABLE ENERGY
States across the country have implemented a variety of policies that accommodate, facilitate, and support going Solar.
Here are the locations where Freedom Solar provides service.
Incentives – Financial
Incentives for solar power include grants, loans, rebates, and tax credits. Many states offer these incentives to promote the use, production, and purchase of solar energy, as well as other renewable sources.
The most well-known incentive is the federal tax credit for solar investments. Solar customers get a 30% credit at tax time on their solar PV systems.
This percentage represents the extension and expansion of the Inflation Reduction Act that the Biden Administration implemented. Later, we’ll return to that topic.
You can also check out the rebates and incentives that Freedom Solar offers for solar panels.
[Related: Guide to Federal Solar Panel Incentives]
RENEWABLE PORTFOLIO STANDARD
The RPS mandates that electric utilities and retail electric providers provide customers with a certain amount or percentage of energy from renewable sources.
Further details on policy can be found in Chapter 5 of the Environmental Protection Agency (EPA) Energy and Environment Guide to Action.
Public Benefits Funds for Renewable Energy
These public funds for renewable energy are also resources that all states in the nation can use. These funds are primarily designed to help states invest in clean energy projects and encourage them.
The funds are derived from the small “system benefit charge” that utilities impose on electricity rates.
Find out more about policy in the Electric Utility Regulatory Frameworks and Financial Incentives section of the EPA’s State Energy and Environment Guide to Action.
ENVIRONMENTAL REGULATIONS BASED ON OUTPUT
The regulations set limits on emissions per unit of energy generated and consumed. These limits are applicable to thermal and electricity energy.
The main objective of the regulations is to reduce the levels of air pollutants (aka greenhouse gases) by encouraging the use of renewable energy and the conversion to efficient fuels.
Check out Chapter 6 of the EPA Energy and Environment Guide to Action Policy Considerations for Combined Heat and Power.
Interconnection Standards
Interconnection standards are essential processes that govern how utilities treat renewable energies and how they connect that energy to the grid.
Standard procedures can help reduce delays and clear up confusion regarding how systems are connected to the grid. The standards could, for example, dictate how solar panels are connected to the grid to contribute to the state’s electricity supply.
NET METERING
You’ve heard about this one before! Net Metering can be a valuable resource for businesses and homeowners who have solar panels.
Solar PV owners can receive compensation for excess electricity generated by their system. Net metering laws vary from state to state, especially in tracking how much power solar customers send or use.
If a PV solar system is not able to generate enough power for a home’s needs, the electric customer will have to purchase energy from the grid. They can then use the solar credits they have accumulated (from net Metering) to buy energy from the grid.
Feed-in Tariffs
The tariffs encourage utilities to invest in renewable energy. What is the reason? Feed-in Tariffs force electric utilities to pay higher rates for renewable energy. This energy is then sent to the grid.
Tariffs provide a stable income for those who produce renewable energy. Tariffs also vary depending on the type of energy.
Do you want more information? You can find more information in A Study of Renewable Energy Feed-In Tariffs in The United States, part of the State Clean Energy Policies Analysis Project.
PACE – PROPERTY ASSESSED CLEAN Energy
PACE is the best option to finance solar home installations.
PACE encourages homeowners to invest in solar power and renewable energy upgrades by making the costs easier to repay.
If you’d like to know more, below is a list of states and governments that offer PACE programs.
How the IRA Benefits Solar Owners
Joe Biden, President of the United States, signed off on the IRA in 2022.
The act contains a set of new and improved tax incentives for projects involving clean energy. The solar ITC was improved, especially in terms of extension and expansion.
Solar ITC is now at 30%. The ITC is extended through December 31, 2025, for solar, geothermal, wind, and other clean energy project that start construction before that date.
The IRA also offers benefits to owners of electric vehicles (EVs). You can charge your EV using a solar-powered charger if you already own one. If you are in the market for an EV and it’s American-made, you could benefit from a tax credit of $6,000