Financial return for government support of large-scale thin-film solar photovoltaic manufacturing in Canada
K. Branker and
Joshua Pearce
Additional contact information
K. Branker: Queen's University [Kingston, Canada]
Post-Print from HAL
Abstract:
As the Ontario government has recognized that solar photovoltaic (PV) energy conversion is a solution to satisfying society's energy demands while reducing the adverse anthropogenic impacts on the global environment that compromise social welfare, they have begun to generate policy and funding programs to support financial incentives for PV. This paper provides a financial analysis for investment in a 1 GW per year turnkey amorphous silicon PV manufacturing plant. The financial benefits for both the provincial and federal governments were quantified for: i) full construction subsidy, ii) construction subsidy and sale, iii) partially subsidize construction, iv) a publicly owned plant, v) loan guarantee for construction, and vi) an income tax holiday. Revenues for the governments are derived from: taxation (personal, corporate, and sales), sales of panels in Ontario, and saved health, environmental and economic costs associated with offsetting coal-fired electricity. Both governments enjoyed positive cash flows from these investments in less than 12 years and in many of the scenarios both governments earned well over 8% on investments from 100s of millions to $2.4 billion. The results showed that it is in the financial best interest of both the Ontario and Canadian federal governments to implement aggressive fiscal policy to support large-scale PV manufacturing.
Keywords: financing; government incentives; photovoltaic (search for similar items in EconPapers)
Date: 2010
Note: View the original document on HAL open archive server: https://hal.science/hal-02120501
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)
Published in Energy Policy, 2010, 38 (8), pp.4291-4303. ⟨10.1016/j.enpol.2010.03.058⟩
Downloads: (external link)
https://hal.science/hal-02120501/document (application/pdf)
Related works:
Journal Article: Financial return for government support of large-scale thin-film solar photovoltaic manufacturing in Canada (2010) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02120501
DOI: 10.1016/j.enpol.2010.03.058
Access Statistics for this paper
More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().