Solar energy production makes good business sense for Governments, study finds

ScienceDaily (May 21, 2010) – Canadian and provincial governments could spend to build a large scale solar photovoltaic production system $ 2.4 billion and then give it away for free and earn a profit is still in the long run performed according to a financial analysis of Queens's University applied sustainability research group in Kingston, Canada.

Queen's University engineering professor Joshua Pearce led the students - published in the August issue of the scientific review all - should support surprised to discover the answer is an overwhelming even in extreme situations and feels Governments aggressively use this industry the financial opportunity to find out whether it was economic sense for Governments to support the production of solar cells in Canada macht.Er.

"This study used hard financial Zahlen.Alles, what we have done is transparent and all our equations are in the study," says Professor Pearce. "Clear and massive costs outweigh the benefits which manufacture in Canada are encouraging solar."

The report saw six different scenarios: everything from building a plant and it give away or more traditional and less costly credit guarantees or taxes to sell holidays for a company of the private sector, to construct the plant. In all scenarios both federal and provincial governments positive cash flows in less than 12 years enjoyed in many of the scenarios both Governments earned well over one and eight percent return on investment of hundreds of millions to $ 2.4 billion to go.

Revenue for the Governments of nearly $ 500 million per year, were determined by taxation (personal, corporate and sales), sale of panels, and health, environmental and economic costs settled saved-fired electricity coal.

Queen's study began last summer, before the Government of Ontario announced a 7 billion - dollar - makes - production and manufacturing in January deal with Samsung.Professor Pearce says Canadians are the winners, but some criticism of the business.

"" Canada will really make up, when Samsung comes through with what you said go to tun.Wir gave you a little incentive and Samsung give us a lot of jobs, less pollution and a long term essential Einnahmequelle.Wir are absolutely currently winning on this Deal--there is no question, ", says Professor Pearce.The market is much larger than the Samsung business."The question is now how to bring more photovoltaic manufacturer to the province."

The energy policy report co-authored by Queen's student Kadra Branker, studied the financial implications in Ontario, but Professor Pearce says the numbers can apply to all provinces in Canada.

Story source:

The above story is from materials from Queen's University reprinted provided (with editorial adjustments of ScienceDaily staff).

Journal reference:

K. Branker, j. m. Pearce.Financial return for Government to support the large-scale thin-film solar photovoltaic production in Canada. energy policy, 2010; 38 (8): 4291 DOI: 10.1016/j.enpol.2010.03.058

Note: If no author is specified, instead cites the source.

View the original article here