A Queen’s University study in the journal Energy Policy has come out in favour of strong government support for solar manufacturing in Ontario. The study looked at six scenarios under which both federal and Ontario government support would be provided.
- Full construction subsidy.
- Construction subsidy and sale
- Partially subsidized construction
- Public ownership of manufacturing plant
- Full loan guarantee for construction
- Income tax holiday
Under all scenarios, “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 per cent on investments from 100s of millions to $2.4 billion,” according to an abstract of the study. “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.” Continue reading Queen’s U study says government support for solar manufacturing a no brainer