Incentives for Energy Efficiency: A Look at Global Practices
Globally, it is undeniable that there has been a
proactive approach towards promoting sustainability. Different nations, their respective governments, as well as private organizations, have been
incessantly searching for the best ways to protect the environment and promote
what is best for it, specifically through the use of renewable energy. In fact,
federal and state subsidies have
been common in many developed countries, which is a way of encouraging
businesses and citizens to be contributory in the quest towards having a
cleaner world.
In the rest of this post, we will have a quick
look at some of the various federal and state programs to promote renewable energy and energy efficiency, including tax incentives
and subsidies that are in place in different countries. These programs are meant to
attract governments, states, businesses and entire countries, into considering alternatives to promote clean energy.
United
States
When it comes to providing tax incentives for the use of green energy, United States is
perhaps one of the best. The Solar Investment Tax Credit is one of the most
popular examples of such. This will provide tax credit of up to 30% to eligible residential and commercial
users. It is in place until 2023, which means that businesses in the solar industry
can expect steady growth in their finances. There is also a Production Tax
Credit for those who are engaged in the production of electricity using
renewable sources. In addition, there are also various federal and state subsidies that are in place. The US Department of
Agriculture, for instance, has a program that helps in energy generation and transmission
in rural communities. More so, under the Alternative Fuel Infrastructure Tax
Credit, combining 20% of biodiesel in various equipment can make an
organization eligible for further tax
credits.
Clean Energy Incentive Program - The EPA is providing a Clean Energy Incentive Program (CEIP)
to reward early investments in renewable energy generation and demand-side
energy efficiency measures that generate carbon-free MWh or reduce end-use
energy demand. State participation in the program
is optional.
The Clean
Power Plan is no different, as state participation is optional, based on the
level of desire for participation in this program. This Plan was stayed by the
Supreme Court until further litigation is resolved. However, it will see its
day in court and EPA remains fully confident in its legal merits. The Plan
rests on a strong legal and technical foundation and is consistent with Supreme
Court decisions, EPA’s statutory authority, and air pollution standards that
have been put in place to tackle other pollution problems. More
info. on the Clean Power Plan:
Germany
German
Renewable Energies Act: european-renewable-energy-incentive-guide-germany
China
The Renewable
Energy Law: Renewable_energy_in_China#National_laws_and_policies
Sweden
In order to demonstrate their concern towards
environmental sustainability, a plan has been enforced since 2005, which has mainly been aimed towards improving energy efficiency and included more than 180
power-intensive companies. In exchange for their participation in the reduction
of their energy use, they have been provided tax credits. The government also provides a fee-based system in
order to recognize businesses that have been actively pursuing strategies to
reduce greenhouse gas emissions.
Canada
The country’s government has expressed its
commitment to reduce greenhouse gas emissions by at least 30% by 2030 compared to its
level in 2005. By the same year, the government has vowed to source 90% of its electricity
from clean sources. There are various tax
incentives in place to encourage wide-scale participation. For instance,
there is an Investment Tax Credit for companies performing research and
development concerning the use of green energy. The Accelerated Capital Cost
Allowance and Canadian Renewable and Conservation Expense are open for eligible
businesses, which can effectively lessen their income tax in exchange for the
use of renewable energy sources.
Iceland
In this country, the renewable energy that is
produced is five times more than what can be consumed by the current
population. This means that there is a lot that has yet to be utilized,
especially in the form of geothermal and hydro energy. To promote the use of
green energy, the country is offering tax
credits to investors. BMW is one of the biggest
companies to have taken advantage of such. The company noted that their
operating costs were reduced to as much as 83% because of the incentives
provided by the national government. This was mainly due to the profit tax being reduced from 20 to 15% due to their use of renewable energy and energy efficiency technologies.
Denmark
Under the Green Growth Strategy, the
government envisioned protection of the environment and promotion of the
agricultural sector. To do this, the government has released 32 billion DKK annually in order to fund planting costs of farmers. They also provided starter
fund for organic biogas production. Such federal
and state subsidies reflect efforts of the government to help promote green
energy in the country. Tax incentives are
also in place for users of renewable energy sources, including solar panels and
wind turbines.
Please also see: www.greencitytimes.com/Sustainability-News/feed-in-tariffs-simple-incentives-to-further-renewable-energy.html
Please also see: www.greencitytimes.com/Sustainability-News/feed-in-tariffs-simple-incentives-to-further-renewable-energy.html
