Electricity is the most used source of energy and with the rapid population and advancement in technology, there is a necessity of producing more electrical energy. Averagely, about $ 300 billion goes to conventional power sources each year. Out of the $300 billion, only thirty percent of it goes to renewable energy each year. This means that every year, 90 billion is spent on renewable energy (Buxbaum, 2014). Two reasons can explain the variance in the amount spent on renewable energy. Firstly, eighty percent of the investment decline came because of the decreasing cost of renewable energy technology, chief among them being solar panels. For instance, the cost of a rooftop solar system that is considered a good national trend barometer is reported to have fallen by almost a third. The other twenty percent was a result of a reduction in actual construction activity. This was influenced by subsidies from the government as well as general sluggishness in economics. With PTC, the cost of energy is significantly reduced. For this reason, businesspersons controlling other non-renewable energy, are using the media to convince people to stop using PTC because they are seeing it as a threat to their business. The majority of the citizens are gradually diverting to PTC products. The PTC is so important to the economy, and thus it must be saved. These tax credits are reported to have benefited many people by playing a significant role in the growth of the America economy, enhancing energy security, and job creation, and providing support to the new manufacturing process in the US among other benefits. Besides, PTC has to increase the production of wind energy which is clean and affordable (Roach, 2015). For proper regulation of energy, it is crucial to have an energy policy. This policy is essential since energy is a basic requirement for most social and economic activities in industrialized nations. The cost of energy has to be regulated because it affects production in industries as well as the living conditions of the citizens.
References
Buxbaum, R. (2014). Driving Renewable Energy Growth Through Effective Public Policy: A Financial and Policy Analysis of Cash Grants, Tax Credits and Pass-Through Tax Structures (MLPs and YieldCos).
Delegate your assignment to our experts and they will do the rest.
Roach, T. (2015). The effect of the production tax credit on wind energy production in deregulated electricity markets. Economics Letters , 127 , 86-88.
