Financial Policy Analysis
NREL's financial policy analysis team examines the effects that policy has on renewable energy project financing and development. They look at how policies such as feed-in tariffs, clean renewable energy bonds, and power purchase agreements can shape the pace and structure of financing. For more on NREL's analysis of these policies, access the information below.
Key Analyses for 2010
Feed-in Tariff Policy Design
SEAC analysts Karlynn Cory and Claire Kreycik, along with Toby Couture of E3 Analytics and Emily Williams of the U.S. Department of State, recently published the report "A Policymaker's Guide to Feed-in Tariff Policy Design." Feed-in tariffs (FITs) are the most widely used renewable energy policy in the world for driving accelerating renewable energy (RE) deployment, accounting for a greater share of RE development than either tax incentives or renewable portfolio standard (RPS) policies. FITs have generated significant RE deployment, helping bring the countries that have implemented them successfully to the forefront of the global RE industry. In the European Union (EU), FIT policies have led to the deployment of more than 15,000 MW of solar photovoltaic (PV) power and more than 55,000 MW of wind power between 2000 and the end of 2009. In total, FITs are responsible for approximately 75% of global PV and 45% of global wind deployment. Countries such as Germany, in particular, have demonstrated that FITs can be used as a powerful policy tool to drive RE deployment and help meet combined energy security and emissions reductions objectives. This policymaker's guide provides a detailed analysis of FIT policy design and implementation and identifies a set of best practices that have been effective at quickly stimulating the deployment of large amounts of RE generation. Although the discussion is aimed primarily at decision makers who have decided that a FIT policy best suits their needs, exploration of FIT policies can also help inform a choice among alternative renewable energy policies.
Other reports on feed-in tariff policies
"Renewable Energy Prices in State-Level Feed-in Tariffs: Federal Law Constraints and Possible Solutions." Hempling, S.; Elefant, C.; Cory, K.; Porter, K. (2010). 68 pp. NREL Report TP-6A2-47408.
"Feed-in Tariff Policy: Design, Implementation, and RPS Policy Interactions." Cory, K.; Couture, T.; Kreycik, C. (2009). 23 pp.; NREL Report No. TP-6A2-45549.
Key Analyses for 2009
Residential Solar PV Financing
NREL analysts Jason Coughlin and Karlynn Cory recently published the report "Solar Photovoltaic Financing: Residential Sector Deployment." This report presents the information that homeowners and policy makers need to facilitate PV financing at the residential level. The full range of cash payments, bill savings, and tax incentives is covered, as well as potentially available solar attribute payments. Traditional financing is also compared to innovative solutions, many of which are borrowed from the commercial sector. Unfortunately, these programs are limited to select locations around the country. By calling attention to these innovative initiatives, this report aims to help policy makers consider greater adoption of these models to benefit homeowners interested in installing a residential PV system.
"Renewable Energy Project Financing: Impacts of the Financial Crisis and Federal Legislation." Schwabe, P.; Cory, K.; Newcomb, J. (2009). 27 pp.; NREL Report No. TP-6A2-44930.
"Solar Leasing for Residential Photovoltaic Systems (Fact Sheet)." (2009). 6 pp.; NREL Report No. FS-670-43572.
"Innovations in Wind and Solar PV Financing." Cory, K.; Coughlin, J.; Jenkin, T.; Pater, J.; Swezey, B. (2008). 39 pp.; NREL Report No. TP-670-42919.
"Renewable Energy Financing: The Role of Policy and Economics." Cory, K. (2008). 16 pp. presentation; NREL Report No. PR-670-42918.
"Renewable Energy Planning: Multiparametric Cost Optimization." Walker, A. (2008). 10 pp.; NREL Report No. CP-670-42921.
"Solar Photovoltaic Financing: Deployment on Public Property by State and Local Governments." Cory, K.; Coughlin, J.; Coggeshall, C. (2008). 72 pp.; NREL Report No. TP-670-43115.
To talk with an analyst about this area of policy analysis, contact Karlynn Cory.