Solar Energy State and Local Policies, Incentives, and Rules and Regulations
As outlined in the previous section, there are a number of
federal-level financial incentives available to support the
increased deployment of solar energy technologies. State and local
policies work in parallel with these federal-level initiatives, but
go beyond financial incentives to include renewable energy mandates
and other mechanisms to further stimulate adoption of solar energy
technologies. State legislators and utility commissioners hold
primary responsibility for setting a state’s overarching energy
policy and regulatory framework. How solar technologies are treated
in this process will significantly affect how, or even if, a solar
market develops in a state. Local governments also influence solar
policies. In areas where the local government has jurisdiction over
a utility, the government can directly influence solar rebate
programs and renewable generation requirements. In areas served by
investor-owned utilities or cooperatives, local governments can
still play an important role in solar market development by
streamlining permitting processes or developing innovative financing
mechanisms.
State and local policies in support of increased solar deployment
are more prevalent than federal policies and have a well-established
history of both successes and failures. As such, states and regions
with stronger and longer-term policies and incentives, coupled with
a favorable electricity market (e.g., higher than average
electricity prices) and an adequate solar resource, have established
pockets of wide-scale solar installations. In addition, because
states are often innovation hubs, there is a continuous flow of new
policies and approaches to driving solar development that bears
watching.
Planning and Permitting
Planning is an effort by governments to ensure community land and
resources are used in a beneficial manner. Permits are allowances
issued by governments to ensure that activities undertaken within
their jurisdictions meet established guidelines. Planning and
permitting are important steps in the installation of solar
technologies. Done properly, they ensure that a solar project meets
necessary safety, operational, environmental, and community
compatibility standards while not unduly hindering the project's
completion. However, planning and permitting processes not well
designed for solar applications can increase the cost and time
requirements of a project substantially or even create enough delay
and difficulty that the project is not completed.
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