Abstract
This article evaluates the strengths and weaknesses of federal tax credits as instruments of US solar commercialization policy. It demonstrates that the overall cost-effectiveness of the tax credits in inducing energy savings has not been conclusively documented. In addition, at the time they were created there was mismatch between the commercialization strategy represented by the tax credits and the state of the solar industry and the technology. Despite these limitations, tax credits supported many of the objectives embodied in solar commercialization policies; they benefited the solar industry and contributed to its development, and they provided a visible sign of government support for solar energy.
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