Japan To Cut Solar Panel Costs By 50%
By Justin Gardner | Related entries in Economy, Energy, Environment, Good Decisions, McCain, Taxes, The World
Remember my post today about McCain’s $5,000 a car tax break giveaway to the auto manufacturers who make and sell zero-carbon emissions cars?
If so, do you recall how I said it was a bad idea, and that he should instead be proposing giving consumers tax breaks because incenting consumption is the only way we can make sure that this sub-industry is sustainable and therefore viable?
Well, looks like Japan is adopting the market driven model…
The Japanese government will introduce tax credits and subsidies to encourage household use of solar energy starting next year. The details will be determined in August when the budget is created. The incentive will decrease the cost of a solar photovoltaic system by an estimated 50% within 3 to 5 years.This initiative will make solar energy especially appealing because the cost of electricity in Japan is already over $.20 a kWh. This is roughly double the rate of electricity found in many areas of the US. Increased production of solar components can help the cost to decrease by creating an economy of scale. This solar incentive will also assist Japan in becoming more energy independent and less reliant on volatile fossil fuel markets.
The more consumers who put less strain on the grid, the easier it is on the country as a whole and the cheaper energy gets for others.
Could this idea work stateside? I can’t help but think it would. But the incentive has to be put into the hands of consumers, not the manufacturers. I’m glad to see Japan gets that, and I’m still puzzled why a guy like McCain doesn’t.
This entry was posted on Monday, June 23rd, 2008 and is filed under Economy, Energy, Environment, Good Decisions, McCain, Taxes, The World. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
June 23rd, 2008 at 7:58 pm
Is there a commercially viable zero emission car available on the market today that I could buy to get those tax incentives. Solar panels are already available to the market, so the incentive SHOULD go to the consumer to purchase. Until a car is available, the incentive SHOULD go to the manufacturer to make them.
June 24th, 2008 at 12:24 am
No it should still go to the consumer, as consumption is what drives an industry, companies will go where there is profit to be made, if people will be more likely to buy a zero emissions car companies will enter that market. Companies are already working on things like Plug in Hybrids and new generation of electrics, because they know that people are demanding those vehicles, you want to incentivize consumption, not production.
McCain doesn’t follow that plan because this is a way to slide in what amounts to another corporate tax cut.
June 24th, 2008 at 9:09 am
Point of fact: That’s not “market-driven.” That’s SUBSIDY-driven. They’re not cutting the actual cost, they’re subsidizing it.
Small-scale solar is getting competitive on its own right now. The breakthrough point will be where the amortized net cost of small-scale (home install) photo-voltaics hits around 15 cents per kWh. I look forward to net metering and affordable home install.