Featured Research

from universities, journals, and other organizations

Solar power manufacturing makes good business sense for governments, study finds

Date:
May 21, 2010
Source:
Queen's University
Summary:
Canadian and provincial governments could spend $2.4 billion to build a large scale solar photovoltaic manufacturing plant and then give it away for free and still earn a profit in the long run, according to a financial analysis.

Joshua Pearce's feel governments should be aggressively supporting large-scale solar power manufacturing plants.
Credit: Image courtesy of Queen's University

Canadian and provincial governments could spend $2.4 billion to build a large scale solar photovoltaic manufacturing plant and then give it away for free and still earn a profit in the long run, according to a financial analysis conducted by the Queen's University Applied Sustainability Research Group in Kingston, Canada.

Queen's University Mechanical Engineering Professor Joshua Pearce conducted the study -- to be published in the August edition of the academic journal Energy Policy -- to find out if it makes economic sense for governments to support solar cell manufacturing in Canada. He was surprised to discover the answer is an overwhelming yes even in extreme situations and feels governments should be aggressively supporting this industry to take advantage of the financial opportunity.

"This study uses hard financial numbers. Everything we did is transparent and all our equations are in the study," says Professor Pearce. "The benefits of encouraging solar manufacturing in Canada are clear and massively outweigh the costs."

The report looked at six different scenarios: everything from building a plant and giving it away or selling it to more traditional and less costly loan guarantees or tax holidays for a private sector company to construct the plant. In all the scenarios, both federal and provincial governments enjoyed positive cash flows in less than 12 years and in many of the scenarios both governments earned well over an eight per cent return on investments ranging from hundreds of millions to $2.4 billion.

The revenues for the governments of nearly $500 million a year, were determined from taxation (personal, corporate and sales), sales of panels, and saved health, environmental and economic costs associated with offsetting coal-fired electricity.

Queen's started the study last summer, before the Ontario government announced a $7-billion power production and manufacturing deal with Samsung in January. Some criticized the deal but Professor Pearce says Canadians are the winners.

"Canada will really make out if Samsung comes through with what they said they are going to do. We gave them a little bit of incentive and Samsung will give us a lot of jobs, less pollution, and a long term substantial source of revenue. We are absolutely winning on this deal -- there is no question," Professor Pearce says. "The market is much larger than the Samsung deal. The question now is how to bring even more photovoltaic manufacturers to the province."

The Energy Policy report, co-authored by Queen's student Kadra Branker, studied the financial impact in Ontario but Professor Pearce says the numbers can apply to all provinces in Canada.


Story Source:

The above story is based on materials provided by Queen's University. Note: Materials may be edited for content and length.


Journal Reference:

  1. K. Branker, J.M. Pearce. Financial return for government support of large-scale thin-film solar photovoltaic manufacturing in Canada. Energy Policy, 2010; 38 (8): 4291 DOI: 10.1016/j.enpol.2010.03.058

Cite This Page:

Queen's University. "Solar power manufacturing makes good business sense for governments, study finds." ScienceDaily. ScienceDaily, 21 May 2010. <www.sciencedaily.com/releases/2010/05/100520131550.htm>.
Queen's University. (2010, May 21). Solar power manufacturing makes good business sense for governments, study finds. ScienceDaily. Retrieved April 25, 2014 from www.sciencedaily.com/releases/2010/05/100520131550.htm
Queen's University. "Solar power manufacturing makes good business sense for governments, study finds." ScienceDaily. www.sciencedaily.com/releases/2010/05/100520131550.htm (accessed April 25, 2014).

Share This



More Matter & Energy News

Friday, April 25, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Next Stop America for France's TGV?

Next Stop America for France's TGV?

Reuters - Business Video Online (Apr. 24, 2014) General Electric keeps quiet on reports it's in talks to buy French turbine and train maker Alstom. Ivor Bennett reports on what could be an embarrassing rumour for the French government, with business-friendly reforms proving a hard sell. Video provided by Reuters
Powered by NewsLook.com
Raw: Obama Plays Soccer With Japanese Robot

Raw: Obama Plays Soccer With Japanese Robot

AP (Apr. 24, 2014) President Obama briefly played soccer with a robot during his visit to Japan on Thursday. The President has been emphasizing technology along with security concerns during his visit. (April 24) Video provided by AP
Powered by NewsLook.com
Obama Encourages Japanese Student-Scientists

Obama Encourages Japanese Student-Scientists

AP (Apr. 24, 2014) President Obama spoke with student innovators in Japan and urged them to take part in increased opportunities for student exchanges with the US. (April 24) Video provided by AP
Powered by NewsLook.com
UN Joint Mission Starts Removing Landmines in Cyprus

UN Joint Mission Starts Removing Landmines in Cyprus

AFP (Apr. 23, 2014) The UN mission in Cyprus (UNFICYP) led a mine clearance demonstration on Wednesday in the UN-controlled buffer zone where demining operations are being conducted near the Cypriot village of Mammari. Duration: 01:00 Video provided by AFP
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins