Farms in Indiana could save up to 92% by using solar energy rather than traditional grid-sourced electricity, whereas homes in the same state would only save approximately 50%.
Image Credit: Wally Tyner amid solar panels on the roof of Purdue’s Knoy Hall via Purdue Agricultural Communication / Tom Campbell
This, according to a new study conducted by economists at Purdue University and published in the journal Energy Policy.
According to the study, current energy policies play “key roles” in tempting people to solar energy in Indiana, but businesses have a one-up on the average consumer, a tax policy option known as depreciation, whereby businesses can deduct their investment in solar from their revenues.
Subsequently, according to the benefit cost analysis conducted by Purdue economists Wally Tyner and graduate student Jinho Jung, if homeowners were allowed the same tax options, they could be saving a lot more on the switch to solar.
“Under current law and policy, whether you lose or make money with solar as an Indiana homeowner is like throwing the dice – you don’t know,” said Tyner, the James and Lois Ackerman Professor of Agricultural Economics. “But solar is a clear economical choice for farm businesses. The tax advantage from depreciation makes a huge difference in the overall economics.”
Tyner believes that consumers are currently facing a simple question — is it, or is it not cheaper to own and run solar electricity when compared to existing grid-sourced electricity? This is particularly an issue in states like Indiana, where electricity costs are already lower than the national average. However, a switch to solar in a state like Indiana — which acquires 95% of its electricity from cheap coal power — could be a mammoth opportunity for the solar energy industry.
“If you put solar energy and coal power on a level playing field, solar emerges as a clear winner,” Tyner said. “Many more homes in this state would have it.”
I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
