Environmental Engineering Reference
In-Depth Information
renewable energy equipment. As shown in figure 5, states in the West, Northeast,
and Midwest are leading many of these efforts.
Many states have adopted various standards, mandates, and financial
incentives to stimulate the deployment of renewable energy technologies by
offsetting their high startup costs. The following are two examples of states'
initiatives:
•
In 2002, New Mexico enacted a production tax credit of 1 cent per
kilowatt-hour for companies that generate electricity from wind, solar, or
biomass. In February 2006, New Mexico enacted a 30-percent personal
income tax credit (up to $9,000) for residents who purchase and install
photovoltaic or solar thermal systems. New Mexico also has net-metering
and interconnection rules, which address connecting renewable energy
sources to the power transmission grid and crediting producers for excess
power generation.
•
Since 2004, Massachusetts has provided $2.5 million annually in grants
to consumers who install qualified clean-energy technologies under the
state's RPS. These technologies include solar thermal electric power,
photovoltaics, and wind generation. Massachusetts also has net-metering
and interconnection rules.
Sources: GAO analysis of the Database of State Incentives for Renewable Energy
maintained by the Interstate Renewable EnergyCouncil and Map Resources (map).
Note: The map does not show the magnitude of state incentives. For example, while
Minnesota has more types of financial incentives for renewable energy than
California, California's rebate programs have a collective budget over 500 times
greater than the budget for the single rebate program administered by Minnesota.
Figure 5. Distribution of State Incentives and Policies for Renewable Energy.
