A Tax Credit Fueled the Solar Energy Boom. Now It’s in Limbo

Oberhaus, Daniel. “A Tax Credit Fueled the Solar Energy Boom. Now It’s in Limbo.” Wired, Conde Nast, 13 Aug. 2019, www.wired.com/story/a-tax-credit-fueled-the-solar-energy-boom-now-its-in-limbo/.

Solar Energy faced an economic boost when the government deducted thirty percent of the cost of solar panels from citizens’ taxes. However, this contract only lasted 10 years and many are hesitant to renew it. Some suggest a production tax credit system that gives back money based on the amount of energy produced, rather than money originally invested. Others argue that because solar energy barely contributes to energy production in the United States, the investment credit method is preferred. Regardless, the contract either way must be continued, to ensure government protection over at least one renewable energy source.

 

This article relates to environmental science because it expresses how quick the government is to attempt and remove laws beneficial to the environment, merely due to cost. Because the tax plan for the solar panels was not proving to be efficient, companies are struggling to convince the government of the value of such a renewable source of energy. It also points out the success of wind turbines and how much energy they have provided under the correct tax system (production), thus suggesting that solar panels could have the same capability. Lastly, the article closes by mentioning that ending the contract completely would be far worse than either tax system option, as it would leave no policy at all left for regulating greenhouse gas production, or even any way to praise buyers for not worsening the environment through unrenewable energy. 

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