Financial and Environmental Cost-Benefit Analyses Support the Continuation of Government Incentives for Solar Power

Abstract

Solar power is a source of clean, renewable energy that can help consumers reduce their carbon footprints and curb climate change. In recent years, government incentives, along with improvements in efficiency and reduced costs, have made solar power financially beneficial for consumers as well. In order to accurately analyze the costs and benefits of a potential solar project, many factors must be considered. These include the size of the solar array, the amount of sun exposure, the lifespan of the panels and inverters, the lifespan of the roof or other foundation, the current and future price of utility-provided electricity, and the amount of government incentives offered. These factors are described in detail throughout this article, and the analysis reveals that government incentives for solar power projects make a substantial positive impact on the financial feasibility. We find that the US federal and state governments should continue their incentive programs in order to prompt more organizations to transition to solar power and thereby reduce greenhouse gas emissions.