WASHINGTON, DC—Resources for the Future (RFF) today released a blog post from Senior Research Associate Jay Bartlett, titled “What Are the Costs and Values of Wind and Solar Power? How Are They Changing?”
Based on prior research he published as an RFF issue brief, Bartlett explains that without a comprehensive federal policy for the power sector—such as a clean energy standard, carbon cap, or carbon tax—as the production tax credit (PTC) for wind is phased out and the investment tax credit (ITC) for solar is phased down, the growth in wind and solar installations will depend on their generation costs and the values ascribed to their energy production.
Bartlett highlights the significance that these costs and values will have in a changing context of reduced credits. “In the absence of significant subsidies, standards, or carbon-based policies that support renewables, the costs and values of wind and solar—now and in the future—are the principal determinants to the growth of renewables.”
Bartlett says that further analyses can help clarify the prospects for capacity growth in markets without government mandates and can help identify priorities for future energy research and development.
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