Solar Dollars: A Complementary Currency that Incentivizes Renewable Energy

Thomas H Greco

doi:10.3389/fbuil.2021.785145

Abstract

Incentives are the key to addressing climate change and the various other aspects of the current multi-dimensional mega-crisis. This paper proposes the issuance of private community currency vouchers by electric utility companies based on their willingness and ability to provide their customers with energy derived from renewable sources. By monetizing the value of renewable energy in the form of a community currency Solar Dollars help to solve several critical problems at once: They incentivize a more rapid shift to renewable energy, help communities to become more resilient and self-determined, and enable the decentralization of economic and political power.

Highlights

The multi-dimensional mega-crisis confronting the world today derives primarily from the fact that the incentives that are built into the economic and financial structures of our global civilization promote behaviors that are antithetical to its solution (Greco, 2009, 2010)
The issuance of Solar Dollars (SD) by the utility in the way described is analogous to the emission of a short term credit note or account payable, SD by comparison have two advantages, first, there is no interest cost and secondly, there is no redemption in official money—the SD vouchers are redeemed only by the provision of electric services
This is especially significant during times of financial stringency and economic recession when official money may be in short supply

Summary

Introduction

The multi-dimensional mega-crisis confronting the world today derives primarily from the fact that the incentives that are built into the economic and financial structures of our global civilization promote behaviors that are antithetical to its solution (Greco, 2009, 2010). The political policies and legislation that favor expansion and agglomeration of corporations reduce competition and drive out small and medium sized enterprises. Communities always find that, to some degree or other, there is unused business capacity alongside unmet consumer needs. It is a situation that derives from our banking system which is increasingly centralized and reluctant to provide credit to local businesses, especially the small and medium sized enterprises (SMEs) that are the backbone of every economy. In the credit expansion phase, banks create asset price bubbles based on government guarantees, subsidies, and/or the expectation of government bailouts when the loans go bad. In the contraction phase, they become risk averse, choosing to invest in “safe” government and corporate securities rather than financing the legitimate needs of businesses in their communities, especially the SMEs

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Conclusion