The current solar power industry is growing rapidly and the yearly growth rate of the solar power industry is predicted to be around 3.57% from 2024 to 2028. In 2023 alone, around 75% of renewable energy is from solar PV.
There are many reasons behind the significant growth of the solar power industry — grid independence, backup power, reduced cost expenses, increased use of renewable energy, and government incentives and subsidies. Let’s learn about solar energy laws and regulations below.
Federal Solar Tax Credit
The Federal Solar Tax Credit, also known as the Investment Tax Credit (ITC), is a major incentive for those looking to install solar panels on their property. With this tax credit, solar system owners can subtract a significant percentage of the solar installation cost from their federal taxes. Some of the benefits of this solar energy policy — reducing solar installation costs, encouraging investment in renewable energy infrastructure, etc.
Solar Renewable Energy Certificates (SRECs)
Solar Renewable Energy Certificates (SRECs) offer extra revenue for people who have solar power systems. For every megawatt-hour of electricity produced by a solar system, they can earn one SREC. People can sell these SRECs in the market where utilities and other entities buy them to meet renewable energy needs.
Net Energy Metering (NEM)
Net Energy Metering (NEM) is a billing agreement that credits solar energy system owners for the surplus electricity they generate and transmit to the grid. With NEM, consumers only need to pay for the net energy they use from the grid. With this credit system, people can save plenty of money on electricity bills.
Peak Load Pricing Policy
The main aim of the peak load policy is to incentivize energy use during off-peak hours and discourage it during peak times. This policy helps in decreasing strain on the power grid. During peak demand periods, the costs to generate electricity are relatively high. By encouraging off-peak use, it is possible to reduce the costs.
For example, in Guangdong Province, China, the peak-to-valley price difference was increased. Due to that, people who manage their energy consumption strategically are able to save more money with the help of energy storage solutions like the BLJ A22-100MJAA system.
By using BLJ A22-100MJAA Industrial Energy Storage System with Air Cooling, people can save up to approximately 81,500 yuan in their annual electricity costs. The battery’s lifespan is 10 years, with a payback period of 4.87 years. In later stages, there is an annual net profit of 81,500 yuan, and the battery retains a residual value rate of 10%.
Renewable Portfolio Standards (RPS)
Renewable portfolio standards are laws that require utilities to produce a certain percentage of their electricity from renewable sources, including solar energy. RPS helps to create a market demand for renewable energy and encourages the deployment of solar energy projects.
State and Local Incentives
There are numerous states and local governments that offer incentives to encourage the use of solar energy. These incentives can come in the form of grants, rebates, property tax exemptions, etc. New York, Illinois, Washington, Massachusetts, Oregon, California, Maryland, and New Hampshire in the USA have some of the best solar energy incentives.
Conclusion
As there are plenty of benefits of using solar energy like backup power, grid independence, and lower power costs, there are many policies and subsidies that promote solar energy adoption. Federal and state governments in many countries are providing financial incentives, tax breaks, and grants to encourage individuals, businesses, and commercial areas to invest in solar energy systems and reduce their carbon footprint.
It is best to acquire solar energy systems and storage solutions from a reliable manufacturer so that they have a long lifespan. Contact BLJ Solar today to order solar energy systems and get instant quotes. BLJ Solar offers a wide range of solar energy systems with low MOQ.