One thing going for the administration is that the cost of solar panels has fallen substantially over the last decade, making them the cheapest source of energy in many parts of the country. The use of solar and wind energy has also grown much faster in recent years than most government and independent analysts had predicted.
Business & Economy
“One of the things we’re hoping that people see and take from this report is that it is affordable to decarbonize the grid,” said Becca Jones-Albertus, director of the Solar Energy Technology Office in the Energy Department. “The grid will remain reliable. We just need to build.”
The administration is making the case that the United States needs to act quickly because not doing anything to reduce reliance on fossil fuels also has significant costs, particularly from extreme weather linked to climate change. On Tuesday, on a visit to inspect damage from the intense rainfall caused by the remnants of Hurricane Ida in New Jersey and New York, Mr. Biden said, “The nation and the world are in peril.”
Some recent natural disasters have been compounded by weaknesses in the energy system. Ida, for example, dealt a huge blow to the electric grid in Louisiana, where hundreds of thousands of people have been without power for days. Last winter, a storm left much of Texas without electricity for days, too. And in California, utility equipment has ignited several large wildfires, killing scores and destroying thousands of homes and businesses.
Mr. Biden wants to use tax credits to encourage the use of solar power systems and batteries at homes, businesses and utilities. The administration also wants local governments to make it quicker to obtain permits and build solar projects — in some places it can take months to put panels on a single-family house, for example. And officials want to offer various incentives to utility companies to encourage solar-energy use.
Jennifer M. Granholm, Mr. Biden’s energy secretary, said part of the administration’s strategy would focus on its Clean Electricity Payment Program, which would reward utilities for adding renewable energy to the electric grid, including rooftop solar. Many utility companies have fought against rooftop solar panels because they see a threat to their business and would rather build large solar farms that they own and control.
“Both have to happen, and the utilities will be incentivized to take down the barriers,” Ms. Granholm said. “We’ve got to do a series of things.”