Solar power expansion proposed by Joe Biden could be adjusted to increase benefits.
Electricity generation accounts for a quarter of all greenhouse gas emissions in the United States, which contribute to climate change. Climate change effects, such as more frequent and severe droughts, storms, and other extreme weather events, put the electric system at risk.
The power sector is critical to the Biden administration’s climate policies for both of these reasons.
President Joe Biden’s proposal to use solar energy to generate 45 percent of the nation’s electricity by 2050 aims to turn the power sector from a problem child to a child prodigy. Two cornerstones have formed as the details unfold.
First, Biden has frequently advocated for extending solar and other renewable energy tax credits, which are expected to cost $200 billion over the next decade. Second, his government has proposed a Clean Electricity Performance Program, which would provide financial incentives to electric utilities that increase their solar sales. The cost of this endeavor is estimated to be $150 billion.
Everyone benefits from lower emissions and cleaner air, but who pays for such large-scale public spending, and who benefits from the economic gains?
For years, I’ve been researching renewable energy, including how to allocate the costs and advantages of clean energy legislation. My studies concentrate on direct economic benefits such as government subsidies and tax breaks.
Biden is bringing solar closer to the mainstream than ever before by proposing $350 billion in legislative incentives. The majority of the costs and benefits of this enormous solar project are well allocated, but I believe there is potential for improvement.
Lower-income families get a break.
Many sustainable energy initiatives, such as renewable portfolio standards and net metering programs, which have been approved by dozens of states, pass costs on to power customers. Renewable portfolio requirements compel utilities to buy a specific percentage of their electricity from renewable sources. Customers must be credited for generating electricity at home, usually from solar panels, and putting it back into the grid under net metering. Customers are billed for corresponding charges in both circumstances by power companies.
While it may appear reasonable to expect energy consumers to contribute to the purchase of additional resources, rising electricity costs place a greater burden on lower-income households. One-third of American households are already in energy poverty, spending a disproportionately significant part of their income on basic energy necessities. The Biden administration avoids inequity by funding its solar drive with tax monies.
Many low-income families contribute… Article Summary from Nokia News