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This is why I think that the solar investment tax credit is better than the wind production tax credit. The wind PTC pays $23 per megawatt-hour generated in the
by philipkglass 8y ago
This is why I think that the solar investment tax credit is better than the wind production tax credit. The wind PTC pays $23 per megawatt-hour generated in the first 10 years of a wind generator's life, regardless of demand at the time of generation. The solar ITC is a 30% tax credit for building new solar plants, but built plants still have to find positive-price buyers for their output to be profitable.
The ITC encourages the development of clean generation without introducing any negative-pricing scenarios. During times of high output and low demand solar plants may bid prices very close to zero, but they won't go below zero. That encourages better matching of new renewable capacity with actual demand.