Public Policy Directives Continue to Shine on Solar Development

Abstract

Recent policy developments over the last year continue to push solar demand to unprecedented levels. However, as more solar energy is added to the market, the traditional paradigms must shift to account for the next generation of energy production. This means that local and federal policymakers, in addition to stoking the demand for renewable energy, must answer the question of what role these energy resources will play in energy markets. Defining the role of solar energy should be a result of collaboration between regulators, utilities, and solar developers. Right now, a hodgepodge of tax credits, commodities, and energy products – both real and pending – have created a tremendous demand for solar, but as solar continues to penetrate the market, the realities of grid operation and integrity loom large. The boom and bust cycle of solar development linked to commodities and tax credits not only leads to uncertainty about the future, but stifles additional investment. Policymakers, utility companies, and developers must come together on a regional basis and decide how to direct this growing industry in a way that provides the most efficient and economic development of a modern electric grid.