Tax credits and potency standards for appliances and vehicles have been pivotal drivers for augmenting renewable appetite use and appetite potency in a United States. Extending these policies and augmenting a rigidity of a Clean Power Plan over 2030 would revoke energy-related CO dioxide (CO2) emissions by shortening engine fuel use and appetite use in buildings by augmenting potency and by augmenting a share of solar and breeze in a electricity era mix.
In EIA’s Annual Energy Outlook 2016 (AEO2016) Reference box projection, that generally assumes stream laws and policies, electricity era from solar and breeze sources opposite all sectors increases from 227 billion kilowatthours in 2015 to 950 billion kilowatthours in 2040. In a Extended Policies case, that perpetuates policies over their legislated expiration, solar and breeze era grow to 1,236 billion kilowatthours in 2040, or 30% above a Reference box level.
Production taxation credits for renewable appetite are legislated to finish or revoke in value in 2017, and investment taxation credits for solar appetite start to diminution in 2020. In a residential sector, these credits finish totally during a finish of 2021. As these taxation credits diminution or expire, utilities and distributed generator (e.g., rooftop solar panels) business accelerate investment and prolongation projects to take advantage of a full value of a credits. In a Reference case, this acceleration formula in a duration of quick expansion in renewable era adult to those death dates. In a Extended Policies case, these credits are extended during their stream value by 2040, heading to steadier and eventually incomparable expansion in renewable energy.
The Extended Policies box also extends sovereign appetite potency policies that inspire a adoption of fit appliances and apparatus in a residential, commercial, industrial, and travel sectors. Reductions in travel appetite use in a Extended Policies box are driven by prolongation of fuel economy mandate that serve diminution appetite expenditure in light-duty, medium-duty, and heavy-duty vehicles.
Lower appetite use and emissions in a buildings zone in a Extended Policies box outcome from softened appetite potency of apparatus for heating, cooling, and other uses, as good as increasing adoption of some-more difficult building appetite codes. Greater use of distributed generation, such as rooftop solar photovoltaic systems, reduces purchases of electricity.
The full Issues in Focus essay on a Extended Policies box provides minute discussions of a assumptions and results.