Despite relatively low subsidies, especially in comparison to the subsidies awarded to other energy sources, solar has been making it’s way as a valuable source of energy .
The federal government provides incentives for every major energy production market and they exist to bridge the “chasm” between early adopters (about 16%) of a certain market and the majority adopters (about 84%). Crossing the chasm doesn’t necessarily mean all companies in the industry succeed, but that the industry itself succeeds. To get from initial adoption to full scale implementation, federal incentives support new energy resources on average for 30 years, including market control for oil, pipeline availability for natural gas, and dams for hydropower. Incentives provide economies of scale in a long term scenario that offer stability during the adoption process with gradual reductions in incentives as the industry matures.
Solar is at the chasm where continued government incentives are critical…
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