Cost-effectiveness of policies supporting solar panels in Indiana

We adopt a real options approach to quantify transfers to households that are sufficient to induce adoption of solar panels. These transfers are then combined with the panels’ production capacity to obtain a measure of cost-effectiveness of alternative policies that are either in effect, or currently being considered by State governments. Alternative policies are then ranked based on their cost-effectiveness. Generally we find that a combination of net metering and peak-pricing is more cost-effective than the federal tax credit and the solar loan interest tax deduction.


Issue Date:
2015
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/205792




 Record created 2017-04-01, last modified 2017-08-28

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