Assessment of Incentives and Employment Impacts of Solar Industry Deployment

A mixed portfolio of energy options has allowed Americans to enjoy long-term economic growth and prosperity. The federal government has engaged directly in developing each energy resource in the mix, although the dollar value estimates of this federal support vary considerably. This report focuses on solar power, evaluating the diffusion of solar energy technology in the United States in the context of the technology adoption process and federal engagement in developing energy options.

The authors examine historical and current federal incentives in energy markets, focusing on incentives along the energy  value chain and by stage of technology adoption. Considering the growth expectations for the domestic and international solar markets, they further analyze the solar industry’s U.S. job creation and solar power’s potential contribution to  addressing peak-demand period power needs and other benefits to the energy portfolio. They conclude that solar energy is following the same incentive-driven path as other traditional energy sources before it, consistent with the government’s decision to incentivize energy production for a variety of policy purposes. They also conclude that the federal investment in solar energy could bring about a number of tangible benefits, including increased employment, global business opportunities, and energy supply diversity.