15 Sep '11, 11pm

Why We Should Democratize the Electricity System — Part 4

Why We Should Democratize the Electricity System — Part 4

In addition to limiting participation in renewable energy development, the federal tax incentives also make renewable energy more expensive than alternative incentive strategies.[8 ] Providing incentives through the tax code forces project developers to partner with “tax equity investors” such as large investment banks. These banks want a return on their investment, so they add cost to the project, costs that are passed on to ratepayers (and also come out of the pockets of taxpayers). Additionally, the number of such tax equity investors is limited, both constricting the total market and allowing them to set their own price. A recent study found that a cash grant (as was enacted as part of the federal economic stimulus package) could provide the same impact on project finances at half the cost to the government and taxpayers.[

Full article: http://cleantechnica.com/2011/09/15/why-we-should-democra...

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