Posts

Showing posts from March, 2023

Government Policies and Subsidies for Renewable Energy

Governments worldwide are subsidizing renewable energy technologies such as solar and wind power. These incentives are aimed at increasing their use in place of fossil fuels and helping to fight climate change. The most important policy tools in the US are the federal production tax credit (PTC) and investment tax credit (ITC). These have helped to make renewable electricity more competitive with traditional fossil fuels. Feed-in-tariffs are a popular policy mechanism used in many countries to accelerate the deployment of renewable energy. They offer long-term contracts for projects to receive a predetermined price per unit of electricity above the retail price. They also guarantee grid access, meaning that energy producers will have a path to connect their facilities to the utility’s network. In addition, they provide energy producers with a set stream of income from their projects. In Germany, feed-in tariff rates vary depending on technology type, size and site, with prices designe