No Federal Incentives for Microgrids?
Government support for microgrids is scant in the US — an issue that industry leaders plan to tackle during a pre-conference workshop on microgrid policy leading up to Microgrid 2019.
State and federal incentives heavily influence which energy technologies prosper. All major energy resources — from energy efficiency to fossil fuels — have received some form of government incentive, especially during their early stages, to help them gain market footing or to fulfill policy goals.
The federal government provided $17.8 billion in tax-related support in 2017, with 25.8% for fossil fuels and 65.2% for renewable energy, according to a report issued in March by the Congressional Research Service. The remainder went to nuclear energy, efficiency, and alternative vehicles.
Projected Annual Cost of Energy-Related Tax Incentives: FY1978-FY2022
Congressional Research Service; https://crsreports.congress.gov R44852
Microgrids benefit from some of these incentives, but only indirectly. For example, the solar portion of a microgrid may leverage a 30 percent federal tax credit allowed for solar. Renewable energy within a microgrid also may earn revenue via renewable energy credits (RECs), created through state renewable portfolio standards, which the Berkeley Lab says are responsible for half of the growth in renewables since 2000.
Government support comes in other forms as well for enabling technologies, such as low interest loans or credits for combined heat and power.
“Yet they are not specifically focused on the integration of these assets into microgrids,” says Asmus, author of the report, “Designing the Ideal Microgrid Program to Accelerate Global Deployment.”
In other words — except for a handful of programs...Continue reading on Microgrid Knowledge.
If microgrids are configured, and have controls, to provide grid benefits, why not subsidize them? As long as the benefits are quantified.
CEO at Electrical Midstream, LLC
5 年There is at least one federal support mechanism for Micrgrids in Texas/ERCOT. Microgrid projects in Texas can be eligible for Accelerated Depreciation under the 2017 Tax Cuts and Jobs Act..
Advocate for scalable climate solutions
5 年Challenge is to quantify the mutual value of microgrids.
Professor/Author | Innovation Practitioner/Protagonist
5 年Micorgrids should be incentivized from the perspective of the enhanced security they inherently provide. Much of the money being spent on macrogrid security will be discovered to be redundant with security which is inherent in a distributed generation system.