Study: Solar Tax Credits Generate Revenue

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Federal financial support of renewable energy has taken a whole lot of heat in the months since Solyndra went bankrupt. Opponents of federal policy have claimed that solar grants and subsidies increase the federal deficit while doing little to promote new sources of energy. But a study published yesterday by the U.S. Partnership for Renewable Finance (US PREF) indicates that tax credits issued to property owners who install solar panels actually turn out to be sound investments for the government, returning tax revenues well in excess of the value of the credits.

US PREF, a program of the American Council On Renewable Energy, says its study shows that the return for the government on its investment in solar tax credits is equivalent to about 10% interest.