The Magnitude of the Federal Solar Energy Program and the Effects of Different Levels of Funding

To accelerate development and use of solar energy systems, Congress has greatly increased appropriations for research, development, and demonstration of solar energy over the past few years. Different programs and funding requirements have been necessary to carry out programs for the following technologies: fuels from biomass, photovoltaic conversion systems, solar thermal power systems, wind energy conversion systems, ocean thermal energy conversion, solar heating and cooling of buildings, and agricultural and industrial process heat.

Major funding increases would generally result in an increase in demonstration and research projects in these technologies. Most program officials believed that there was disagreement in relation to specific projects and funding emphasis. Some factors which must be considered in developing strategies for commercialization of solar energy are: the various technologies are geared to different consumer groups; the technologies are at different phases of availability; and, at present, solar technologies are applicable in limited regions of the country. Such mechanisms as tax credits, low-interest loans, and government ownership can be used to stimulate the use of solar energy systems. Solar program officials estimate that it will cost a little over $3 billion to carry out the present program over the next 5 fiscal years. Additional research, development, and demonstrations may lead to cost reductions or technological breakthroughs. However, because of uncertainties about how soon these objectives could be met and the potential energy impact, there was concern that funds for some technologies and applications were difficult to justify.

Recommendations

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