Adjusting Solar Rebates to Changing Markets

This is the way it's supposed to work. Aaron Nathans writes in the News Journal that solar panel rebates in Delaware are being adjusted downwards in response to falling prices:

"This is realistically the next step. As prices continue to drop, we don't need such a big rebate," said Dale Davis, president of CMI Solar Electric and president of the Delaware Solar Energy Coalition, an industry group.

He also sits on the Renewable Energy Task Force that designed the program. The task force, which was charged by the General Assembly with designing a sustainable solar industry in the state, also includes utilities, environmental groups, the solar manufacturer Motech, and representatives of various state agencies.

I am a member of the task force as well, and can testify first hand to the work being done to get the biggest bang for the buck. Task force meetings are open to the public; the next meeting is Wednesday, March 9 at 9:30 a.m. at the Public Service Commission hearing room in Dover.

I can think of two ways in which support for solar power is helping to drive prices down. First, unit costs are coming down as manufacturers ramp up production. Second, the growing market for solar panels is driving further innovation, making panels more efficient or less expensive to produce.