Electric SUN: A Transition From Solar Incentive Policies 


•   Public funds have been crucial pump-priming investments to help grow the solar industry.

•   US state-level public benefit funds are limited and cannot meet the demand for incentives. (2004 demand = $150M; Incentives available = $90M)

•   Clean energy funds are at risk as states manage their budget deficits.

•   In most states and countries, incentives are scheduled to decline in value over the next decade. Solar costs are also expected to decline, once the present-day manufacturing and materials constraints are removed. The match between declining costs and declining incentives will have to be carefully managed.

•  Prudent business planning includes developing innovative, utility-driven strategies.

•  Regulators nationwide encourage utilities to include solar in energy resource portfolios.

•  Electric SUN strategy: maximize solar economic value from the utility’s economic perspective. Use solar as supply resource, not only as a retail energy service.