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Letter: Energy incentives

Published 9 January 2008

From William Hughes-Games

There are many things a government can do to encourage the generation of solar electricity in addition to guaranteeing that it can be sold at a premium price (8 December 2007, p 3). These include: purchasing solar equipment in bulk at a good price, and passing the saving on to the private buyer or contractor; not charging sales or value added tax on solar equipment; allowing an immediate tax write-off of its full price; passing on carbon credits to owners of solar panels; and waiving road taxes on electric vehicles. Another is to implement the “Berkeley option”, in which municipal bonds finance the equipment, paid back through electricity bills over 20 years.

Waipara, New Zealand

Issue no. 2638 published 12 January 2008

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