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What to expect from the Biden administration for solar?

What to expect from the Biden administration for solar?

With a new administration now in office, we often hear the same question – “What will the new administration do for solar?”

While we know the Biden Administration is in strong support of reducing climate change, and investing in our infrastructure and clean, renewable energy – very little has been revealed to date on specifics.

Solar is a great way to increase our use of clean, renewable energy, and the new administration plans to invest $400 billion in it. The right execution of the plan might just create 10 million jobs in the solar industry. Here’s what we can expect:

1. Investment in Infrastructure

Our economy could use a boost in the form of investment in our infrastructure, creating revenue for U.S. businesses, creating jobs, and improving our quality of life.

The new administration could put resources into revamping the country’s infrastructure, inclusive of investments for clean energy.

They would likewise urge organizations to put resources into their employees and recover job losses that came under ruinous strategies of the previous four years. All indications are that solar is a big part of planned infrastructure investments.

2. Incentives

This could happen through a variety of incentives for businesses that manufacture, construct or maintain solar, those who invest in solar, and those who use solar.

Some incentives may be upfront helping with the initial costs, but the most helpful incentives could be those that are provided to consumers who use solar, instead of energy from carbon-emitting sources, for 10, 20, 30 years, or more.

This type of incentive, sometimes called performance-based incentives (PBI) and sometimes called solar renewable energy credits (SREC), can provide a long-term incentive for consumers to go solar and to maintain their solar system.

3. Reduce Trade Disincentives

During the last two administrations, various solar panel and solar cell import tariffs have been imposed on products manufactured in China, and some on products manufactured in any other country besides the United States. These tariffs, sometimes as much as 35%, are a huge burden on consumers, solar developers, and investors.

Removal, or reduction, of these tariffs, would reduce prices and boost investment in solar. As we have seen over the past decade of these tariffs, do not boost U.S. manufacturing by themselves. So, a reduction in these tariffs, combined with incentives for investment in U.S. solar manufacturing would ultimately be the best combination of lower prices and local jobs.

4. Cabinet Reappointing

Biden might appoint an EPA administrator and a Secretary of Energy whose aim will be to fix the damage done by the past administration. Accordingly, renewable energy—and specifically the solar business—will take its legitimate place at the core of the conversation of energy creation in this country after this big step.

5. Return to the climate change debate

Biden has already pledged to rejoin the Paris Climate Accords. It addresses an important return of the United States to the center of the climate change debate and restores our responsibility to push towards clean energy along with the world.

And as the United States reduces its carbon footprint, the shift from fossil fuels to solar and other renewable energy sources will turn out to be crucial. This will encourage companies around the nation to put resources into research-and-improvement activities that could spark innovations in the clean energy industry.

6. Reduction in subsidies

For quite a long time, the fossil fuel sector has demanded that renewable energy resources be compelled to compete on a field while overlooking the huge amount of $20 billion every year they get from the subsidies.

Biden has pledged to lessen or potentially dispose of these direct and indirect fossil fuel subsidies and at last, giving solar and other sustainable power sources a chance to challenge the authority of the oil, gas, and coal industries.

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