Governance by provision

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I Capital grants and rebates. Where sufficient funding is available within the community, providing grants or subsidies towards the capital investment by a business or homeowner can incentivise the purchase of renewable energy equipment such as solar PV (Ann Arbor, Adelaide) and ground source heat pumps (Beijing). Care is needed to ensure the fixed amount of a grant or percentage of the capital cost will be sufficient to create the desirable volume of increased sales. When such a policy is first introduced, the ability of manufacturers, suppliers, installers and maintenance personnel to meet a possible sudden increase in demand for a technology will need careful assessment to avoid the scheme soon losing support if a long lead time results on delivery or administration.

I Operating grants. Payment of some form of support finance after the actual generation of renewable energy in the form of useful heat (Oslo), cold, or electricity, such as a feed-in-tariff scheme (Gainsville, Los Angeles), would encourage the plant owner to operate and maintain the technology to maximise its performance and output. This avoids the risk of a plant being built to gain a capital grant or tax credit, but then being poorly operated and maintained.

I P rivate investment. A municipality can invest in a private renewable energy company to encourage development of a technology (Bristol, Kunming). It can also provide investment opportunities for its citizens in such enterprises as wind farm development (Samsa). The possible investment risks involved can be high unless the revenue from the return on the investment is secured by some form of guarantee. The earlier that the investment is made in the development of the project, then the greater the risk.

I Poft loans and guarantees. Loans offered towards private investments by citizens and/or businesses in renewable energy technologies at low interest rates for end-user financing (Kunming), and revolving funds for household credit (Nelson), can be an attraction for both renewable energy project developers and small-scale purchasers. The period of the loan should be less than the perceived operating life of the technology.

I Tax credits, reductions and exemptions. Tax adjustments are not usually able to be made by local governments but where it is possible in some manner, then they can be a useful tool to encourage renewable energy equipment manufacturers, consultants, designers and researchers to establish their business centre in a city offering generous benefits. Other examples include property tax credits given by local governments for installation of residential (Belo Horizonte, Nagpur) or commercial solar hot water systems.

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Solar Panel Basics

Solar Panel Basics

Global warming is a huge problem which will significantly affect every country in the world. Many people all over the world are trying to do whatever they can to help combat the effects of global warming. One of the ways that people can fight global warming is to reduce their dependence on non-renewable energy sources like oil and petroleum based products.

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