Non-utility Photovoltaic Deployment: Evaluation of U.S. State-level Policy Drivers
Abstract
This article examines whether policies to incentivize solar
photovoltaic (PV) systems in the United States are achieving their objec-
tives. We focus on non-utility solar PV, i.e., solar energy systems owned
by homes, businesses, and other institutions besides electric utilities.
Our study compares the impacts of these policy approaches to those of
other non-policy factors such as per capita income, electricity costs, and
the availability of solar energy resources. Using a hierarchical regres-
sion analysis with cross-sectional data from the years 2012-2013, we find
that the most important drivers of non-utility PV deployment are retail
electricity rates and available solar energy resources, followed by the
presence of personal or corporate income tax credits and net metering
policies. These findings indicate a need for stronger net metering poli-
cies, adoption of income tax credits over property or sales tax exemp-
tions, and more aggressive renewable portfolio standards that create a
more effective solar renewable energy credit market
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