Project 2 – Microeconomic Analysis
Donald Cole
ECON545 – Business Economics
Date: October 12, 2014 Introduction
The new business idea of Cindy is very innovative but being an intelligent businessman Cindy should look for all the broad macroeconomic conditions in the U.S economy where he is planning to begin her contracting business for installing solar panels. Cindy has not only to look for the growth prospects of solar energy equipment which will make use of solar energy to harness and convert it into other types of energy which can be used for daily chores work. Being a student of economics, I would like to give him few ideas and some broad perspectives which Cindy should be taken care of before investing such a huge amount at
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Some of the solar companies have generated good amount of revenues last year. Moreover, Federal, state and local governments offer incredible solar tax credits and rebates to encourage homeowners to switch to renewable energy to lower their energy usage and switch to solar power. The amount of the rebate subsidy varies by program, but some are generous enough to cover up to 30% of your solar power system cost. Therefore, it would be beneficial for Cindy to set up such solar installation company. The federal government allows you to deduct 30% of your solar power system costs off your federal taxes through an investment tax credit (ITC). If you do not expect to owe taxes this year, you can roll over your credit to the following year. Such huge incentives and benefits from the side of government will satisfy the social soul of Cindy as she likes to work for the society.
These incentives dramatically lower the cost of a solar power system or energy efficiency project. These tax credits and rebates often make solar power less expensive than power from the utility company. We will start from the overview of the U.S economy, the current GDP volume and the contribution by each sector. The inflation rate and the unemployment rate would also have great impact on the growth and the operations of the business in U.S. With crude oil prices
the installation of solar panels. She is interested about the cost savings that households and business can
Deciding to start a business is brave and adventurous. The first step to success is a brilliant, viable, profitable idea. Whether you have decided to do it on your own because you are tired of working for someone else, or you are laid off after many years in your organization, before you decide to invest your life savings and get buried in debt, consider the big picture, the current economy, your demographic target consumer and do your research. The idea of solar energy is one such brilliant, viable idea. True the demand is present for such energy, but before taking the leap, consider the market saturation, competition, governmental rules and regulations and other determent factor that will influence the success of your
It has been determined that by implementing solar energy panels to offset 50% of the plants annual electricity usage, this will provide the company with the following incentives (please refer to Exhibit 2 for the full cost analysis):
Do you really think it’s a good idea to go solar, or do you think the company is trying to scam you? We all have some questions that are going to help us find out if solar is the great idea, or if the district,school,community taxes will just lose money for no apparent reason, just for the company to get even more money they they already
The use of solar power as a policy choice is based on the fact that it is an
Inflation and rising prices across the United States will help grow the market, because consumers will try to lower their transportation cost to fund other parts of their expenditures.
Keeping in mind the end goal to accomplish this objective of cleaner energy I propose the plan of solar panels on government structures in New Jersey. With your organizations financing, backing, and administrative resources, I am certain that this target can be accomplished. Currently, "regular gas is giving expanding measures of power, with coal and renewables creating under one-tenth of
Look it this home. This person is looking for a sustainable way to power their home using solar panels not depending much on non-renewable resources. Hopefully in the future we can reduce our dependency on non-renewable resources like natural gases and oil.
This critical thinking assignment will discuss an article concerning the US imposition of a tariff on Chinese solar panels. Under the Obama Administration, the federal trade panel found China responsible for the harm of the U.S. solar panel industry. China exports billions of dollars of solar products to the United States each year and will face tariffs of up to nearly 250 percent for a period of up to five years before reevaluation (Associated Press, 2012). The U.S. hopes that this will help to maintain a viable solar manufacturing base. The remainder of this assignment will discuss economic principles and explain how these tariffs could affect supply and demand.
Due to the fracking industry being gainful, the solar has increased over 55% since 1995, but the rapid fall in the price of sol panel should be supported in future growth ( compound/complex). Also, the geothermal has signifintly became higher to about 27%. New technologies and also higher fossil fuel prices, so the geothermal space heating projects cost competitive with fossil fuel units (compound). Currently accounts are nearly 8.20% of the United States energy consumption. Most of that comes from biomass and hydroelectric sources and because of this, since 1995 the amount of energy produced by renewable sources has increased by 15.9% (complex) (History of Energy Use in the United States). Although, the percentage of fracking is beneficial,
Solar power is one of the most environmentally benign energy sources available. Just 20 days of sunshine produces the same amount of energy as everything stored in Earth’s reserves of oil, coal, and natural gas—yet does not come close to producing the same amount of environmental damage as even one of those options (Greentips, 2005). Solar farms are a clean renewable source that can meet high energy demands and can creates thousands of jobs in the future. It is also used during peak demand for electricity. During the hottest days, the panels are absorbing more energy while homeowners have the a.c. on full blast. They can be installed anywhere
My company is Night Fix Solar Panels. The company is funded by direct investments. The company is a manufacturer of concentrated photovoltaic (CPV) solar panels and offers installation as well. The company will market it panels in the sub-Saharan region of Africa. The company specializes in CPV panels that use the sun as a power source to supply electricity with higher efficiencies than conventional flat panel collectors.
Renewable energy can be more affordable to people in the U.S. There are many possible ways it can be more affordable. For example, a renewable energy such as electricity can power automobiles with a be less expensive cost than to power it on fuel. Since fuel is related with international market, the price on fuel often result to inflation and deflation (Leistikow n. pag.). According to the chart on Gasoline vs. eGallon prices, Dan Leistikow compares, “Fueling your car with gasoline costs roughly 3 times more than fueling with electricity” (n.
In this paper, we analyse the effects of cheaper energy in the US that could spur the total productivity growth in the country. We also intend to understand how the US central bank and the government tend to behave regarding to the higher total factor productivity, and how the rest of the world and the major economies are affected. We have used some diagrams of macroeconomics theories to estimate the outcomes by running the software called RunGem.
Created in the Energy Policy Act of 2005, the 30% Solar Investment Tax Credit (ITC) is the solar industry’s most important and only public policy that supports the deployment of solar energy in the United States to both the residential and commercial sectors. The 30% ITC has been successful in increasing deployment and lowering costs of solar energy. Since the eight-year extension created by the Emergency Economic Stabilization Act of 2008, solar prices have consistently fallen year after year while installation rates and efficiencies have continued to rise, thus equaling the average cost of solar energy dropping by more than 73% and a 6500% annual growth rate since 2006, as reported by an independent analysis done by Bloomberg New Energy and Finance dated September 15, 2015, commissioned by the Solar Energy Industries Association. However, the ITC is set to expire December 31, 2016, and a failure to extend the ITC, according industry experts reported by PR Newswire July 22, 2015, would result in “90 percent of all solar companies going out of business and thousands of jobs lost”. In response to the looming expiration date, Ari Natter, Bloomberg Energy Reporter, reports “the solar industry is launching an all out push starting in 2015 to extend the investment tax credit”. At this point, there are 3