Government policies for rooftop solar panels adoption in the US.
A country that has grown in terms of solar power to 97.2GW today from 0.34 GW in 2008. The energy produced is enough to power 18 million average American homes. Currently, 3% of American electricity comes from solar power, made possible through solar photovoltaics and concentrating solar-thermal energy (CSP).
The popularity and huge demand for this technology led to a dropped in the average cost of solar panels by 70%. By the end of 2021, 121,475 MW of combined photovoltaic solar panels and concentrated solar-thermal power has been installed in the United States. There is a significant surge in employment rate, mainly in solar companies and people for installment and maintenance.
The US has conducted various research on Photovoltaic and concentrated solar-thermal energy in past years, which makes it count on those top countries for generating electricity through solar energy.
The government has been continuously coming up with various projects. It plans to broaden the aspects of solar power within the country, which led to multiple states fixing goals to attain their energy goals.
For example, Hawai plans to attain a 100% renewable energy source by 2045. California aims to produce 100% of its energy from zer0-carbon sources by 2045.
This led to the US government initiating various regulations and policies that encourage people around the country to adopt solar power as their major energy source for their daily lives.
US Government support for solar power.
These are certain supports extended or applied by the US government to benefit the country, the environment, people, and solar companies.
Federal- Under this, a 30% tax credit is available for residential solar rooftop installments. The federal Residential Energy Efficient Property Credit for residential Solar panels will be about 30% by the end of 2019, 26% by the end of 2020, and 22% by the end of 2021.
Section 1603 grants – President Obama’s stimulus bill created this program in 2009. This program provided federal grants to solar companies. For the 30% of investment in solar power. This program expired in 2011.
Solar America initiative – The United States Department of Energy announced on 29 September 2008 to invest $ 17.6 million in six companies. They are in the early stage of procuring PV panels and their components by 2010.
SunShot initiative – Aim to reduce solar power cost by 75% during 2010 – 2020. This leads to the price of the residential system price to be reduced from $6/W to $1.50/W. The commercial system price is reduced from $5/W to $1.25/W, and the Utility-scale system price is reduced from $4/W to $1/W.
Biden administration – President Biden extended the tariff of 15% on solar power for another four years in 2022.
PACE- This is one of the innovative financing movements of the US, pioneering California, Berkeley, and Palm Springs. The homeowners are lent a sum of money for a solar system/ Which includes repairing and additional tax on the property for the coming 20 years. This allows the owners of the houses to install the rooftop solar panels at a little up-front cost.
PACE stands for Property Assessed Clean Energy which is available in 28 states. This program has a feature that states that the pending solar system loan is transferred to the new owner if the property has been sold to another individual. And the loan is paid through electric bill savings.
Their principal feature is to transfer the repayment obligations to the new owner of the property instead of the funds.
This is currently functioning in eight states California, Colorado, Florida, Maine, Michigan, Missouri, New York, and Wisconsin, and the other remaining states are still pending.
State initiatives –
The San Francisco Board of Supervisors had passed the $6000 to homeowners for solar panels and $10,000 for businesses as solar incentives. In April 2016, they made a law for all the new buildings below ten stories to install their solar rooftop panels.
Berkeley started a revolutionary pilot program in 2008. The homeowners can add the cost of solar systems to the property taxes and pay for them out of their electricity cost savings.
New Hampshire had a residential rebate project of $3,750 for 50% system cost of all the solar systems less than 5kWp.
There is a 50% tax credit which can reach upto $12,500 for the installment of solar panels in Louisiana.
New solar power installation is provided with the exemption of 7% state sales tax by the law of New Jersey.
Hence these are certain regulations and government policies implemented by the United States government to attain their goal of making their country completely based upon green fuels as their major energy source.
This, for now, is majorly done through solar power using solar panels provided and installed by the best solar companies around the country for residential and commercial uses.
It’s a process where the initiation has been taken, and the slow conversion process is on flow. If this pace continues with more reliable techniques in the future, then attaining the dream of zero carbon fuel source is very near to achieving. And for this, the US government is working with its concerned people.