One increasingly popular policy for promoting renewable energy is a feed-in tariff. Under such a policy, investors on any scale, from large corporations to individual homeowners, produce their own energy from solar panels installed on their property. Electricity companies are then required to purchase the energy through a long-term contract at an increased rate that would allow the investors to more than offset the cost over time. There is no denying that the initial cost of solar installation would be a burden on the investor. In strenuous economic times, both businesses and homeowners might be reluctant to make the investment, with concern that the payout could be less than sufficient or the plan might prove unfeasible. However, research has shown that a feed-in tariff plan is not only stable but also exceptionally effective, and ought to be more actively pursued.
The author suggestion of using feed in traiff plan is rife with assumption. The author assumed that the only form of renewable energy that can be used under feed in traiff plan is solar energy. There are many other sources present such as Water, Wind, Geothermal etc.which can be included in this plan. For instance, the person living in area where production of wind energy is more favourable than solar energy it would be a waste of individual money to spent on solar plant.
Also, author has assumed that the production of solar enery is same irrespective to the person loaction. For instance, consider the individual living in cold countries where sun in not visible for weeks. The investment in such a case will not give fruitful result.As he will be comsuming more energy than what is produced by solar cells.
Moreover, author has assumed that the power poduced by solar cells installed in the large compaines will be sufficient to slander there energy demand as well as supply again to power feeder. Also, author has assumed that the compaines has sufficient area required to install the solar panel which are capable of producing the energy required by the indusrty. In addition to this the author didn't mentioned to which scale the size of industry is measure. Is it in Energy consumption or the Area available? As it is possible that the company area is small but would be using more energy consuming devicies. Also, author has assumed that every household will be able to afford the money spent on installtion of solar panel. May be they has some immediate financial needs such as sending there children to college, paying for their disease treatment. So, in that case it will be difficult for that to inveset in this.
Also,the term used by the author 'Long term contract' is vague. As it doesn't mention how long. Long may be 2 years,10years or 25 years or so on. So it will be difficult to for the industries as well as individuls to invest in this.
However, to promote the renewable enegy the government sould also step forward, giving individual incentive or subsidised solar panel so they will be more happy to use that
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