State renewable energy tax incentives: monetary values, correlations, policy questions

Abstract

Most states have enacted tax incentive programmes to accelerate renewable energy use independent of federal efforts. The monetary value of each state's incentives to purchasers of solar water, wind energy, or photovoltaic cell systems is calculated to compare state programmes. While the value of the incentives varies dramatically, the amounts appear unrelated to state energy and non-energy characteristics. The variations in state commitments and their independence from state energy conditions raise several policy questions that need to be addressed as the states assume the major role in renewable energy commercialization.