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Creating Individual Incentives for Green Energy. Photovoltaics vs. Solar Water Heating. Should States emphasize photovoltaics or solar hot water heating systems when implementing subsidies for solar energy? We will use California as our test case. The Question.
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Creating Individual Incentives for Green Energy Photovoltaics vs. Solar Water Heating
Should States emphasize photovoltaics or solar hot water heating systems when implementing subsidies for solar energy? We will use California as our test case. The Question
Solar-power systems are currently available. Solar can be both generated and used on an individual level. A large majority of solar hot water heaters are run on natural gas. Distributed energy production creates a buffer against market fluctuations or disruptions in fossil fuel supply. Why should we care?
Solar Hot Water heaters Flat-plate collector, Pomona Valley, CA, 1911 Source: Perlin, 2005.
Solar Hot Water Systems Solar heat collection: Flat plate collector Heating water: Direct Circulation System
0.2 MW of Photovoltaic Modules and 8,500 Solar Hot Water Heaters sold for domestic use every year Current Market Penetration
Energy Act of 2005 • 30% of system cost, up to $2000 • Same for Solar Hot Water Heating and Photovoltaic systems • Expires December 31, 2008 • Solar America Initiative Federal Incentives
Typically cover around 30% of cost • Range from $800 - $46,500 maximum rebate • Differ on requirements for “net-metering” • CALIFORNIA: • Residential and commercial customers will receive incentives of $2.50 per watt up for PV installations of up to 1 megawatt in size. • Similar incentives for Solar Hot Water Systems. State Incentives
Current Federal and State incentives completely cover the individual’s net costs for Solar Hot Water Heaters Photovoltaic systems are not completely covered. Economies of Scale & Research and Development are the two most important factors in developing the solar market Findings