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additional projects is being considered. It is estimated to have been worth $20 million in 1998. Additional production tax credits for wind, biomass and landfill methane are provided to publicly owned generators. Investment tax credits were initially used in California, but were found to be less effective in encouraging renewable electric power generation than the production tax credit (Sawin 2001). Electric utility restructuring holds substantial promise for incorporating renewable energy into the US electric production system. National legislation has been stalled, but a number of states have now implemented some aspects of restructuring. States that have restructured their electric power sectors have implemented a number of regulations to promote renewable energy. These include renewable trust funds collected from a system benefit charge to subsidize the higher cost of wind solar and other renewable facilities, renewable portfolio standards, exemption from sales taxes for the purchase of renewable technology, property tax exemptions, accelerated depreciation and subsidized loans. A total of thirteen states have a System Benefits Charge that in some cases can also support renewable energy. Currently, ten states have a renewables portfolio standard requiring that a specified minimum of additional installed capacity consist of renewable energy. A benefit to small-scale residential and commercial use of solar energy is a net metering requirement that permits surplus power to be sold to the grid. Consideration is being given to reinstating the types of federal and state tax credits for the purchase of renewable technology that were common in the 1970s and 80s (Sawin 2001; EIA 2002). Some renewable energy developers have created a green pricing strategy that permits customers to pay a premium for electricity produced by renewables. The cost may range from 1 to 5 cents per kWh. A system of transferable “green tags” allows customers who are not served by renewable energy generating capacity to pay a green premium to developers of green power elsewhere in the country. While this movement is small, it is believed to have accounted for an addition of approximately 100 MW of wind power to the US system in recent years. At least one wind power developer is donating CO2 permits for a tax deduction to an NGO as a way to assure its customers that the carbon emission savings will not be traded in the future to offset emissions form fossil generating stations (CACP 2002). Additional examples of voluntary efforts to utilize renewables by institutions, universities and businesses may also be found (TCI 2002). Both federal and state renewable incentives have been allowed to lapse on several occasions, and have been subject to a constant alteration of the regulations governing them. Promising technologies such as solar thermal electric power generation have failed to grow, in part because the California legislature did not extend the tax benefits in a timely manner so that the company was unable to secure financing. Similarly, national incentives were allowed to lapse on several occasions, only to be reinstated retroactively many months later. This has led to a boom and bust cycle, and the eventual elimination of major domestic wind turbine manufacturing in the US (Sawin 2001). Production and shipments of solar photovoltaic panels continues to grow in the US, reaching 60 million peak watts in 1999 and 75 in 2000. However, US global share has fallen from a first place high of 4 percent of the world market in 1996 to second place (27 7PDF Image | Assessing Barriers and Opportunities for Renewable Energy in North America
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