Comments on: The Leatherman of energy policy http://blog.recycled-energy.com/2008/11/18/the-leatherman-of-energy-policy/ RED | the new green: thoughts on ways to reduce greenhouse gas emissions Mon, 19 Jul 2010 17:50:47 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Robert Benz http://blog.recycled-energy.com/2008/11/18/the-leatherman-of-energy-policy/comment-page-1/#comment-1466 Robert Benz Wed, 17 Dec 2008 13:58:46 +0000 http://blog.recycled-energy.com/?p=48#comment-1466 Tax credits for solar energy so distort the incentive to reduce carbon footprint, that companies will forestall projects with a simple payback of less than 2 years in favor of a >$7000/kw project. A customer declined an offer to install a condensing heat exchanger for 3 year shared savings payment. The < $1 mil immediate reduction in carbon emission was not as favorable as an investment in a 10 year $5mil lease on a 700 kw project, due to the 30% tax credit, guaranteed 23cent five year purchase agreement, and an accelerated depreciation plan. Tax credits are a disincentive to carbon reduction from energy efficiency. Tax credits for solar energy so distort the incentive to reduce carbon footprint, that companies will forestall projects with a simple payback of less than 2 years in favor of a >$7000/kw project.

A customer declined an offer to install a condensing heat exchanger for 3 year shared savings payment. The < $1 mil immediate reduction in carbon emission was not as favorable as an investment in a 10 year $5mil lease on a 700 kw project, due to the 30% tax credit, guaranteed 23cent five year purchase agreement, and an accelerated depreciation plan.

Tax credits are a disincentive to carbon reduction from energy efficiency.

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