Question
In: Economics
how would you say that the federal production tax credit for wind works with a feed-in...
how would you say that the federal production tax credit for wind works with a feed-in tariff? is it a positive or negative for the wind developer
Solutions
Expert Solution
Pros-
- Pay only for the energy delivered- As opposed to the prevailing arrangement wherein we, pay for the state-handled ‘wealth fare’ of Tax Breaks, based only on ‘investment’ instead of outcomes.
- Gives true equivalent opportunity for all the investors.- Researchers, investors, start-ups, inventors , industries, corporates & citizenries can act & be equivalently rewarded for their endeavours.
- Electricity utilizers pay for the small increase in expenditure based upon their usage. - Saved energy is same as saved funds. It is totally up to us to save / to waste electricity as we deem fit. Whilst we pay for what we utilize, & the aftermaths of that, we pay our fair share.
- Hedges stakes for our energy in time ahead - In case of drastic price fluctuations, once the generation is created, the wind will always be comparatively free to seize. If the world economy breaks down after we invest in these techniques, we will yet have electricity production as a society due to the national -dollar-locked-in pricing.
Cons-
- Needs governmental ‘regulation’, in an age of ‘de-regulation’ .
- Governmental laws, are dependent on the whim of the next elected officers-. Present politicians will be replaced many times prior to return is made on the investments.
- May at first cost greater than conventional electricity production.- Present pricing is quite close to parity for big wind projects. Feed-in -tariffs are locked in for 10/ 20 years
Rahul Sunny answered 2 years agoRelated Solutions
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