Advice for creating local solar incentives

I've been in the solar game for seven years now, and with Otovo - the company we started in 2016 - I've sold and installed battery and solar systems in 13 European countries. Over those years I've been asked numerous times what works and what doesn't when local politicians and communities want to encourage the adoption of #solarpower.

Here are 5 key lessons for local policymakers when considering local subsidy programs for solar energy, with examples from across Europe:

1. Beware of inconsistent funding: Local subsidy programs may face challenges with inconsistent funding, leading to uncertainty in the market and hindering adoption. Ensuring stable and reliable funding is crucial for the success of local subsidy programs. Sweden has had a rather successful rollout of residential solar over the last decade, but in the early years underfunded local county government programs meant the industry developed by fits and starts, creating unnecessary and unintended friction for Swedish homeowners-
2. Consider public awareness: Lack of awareness among the general public about local subsidy programs can lead to perceptions of unfairness if only a few recipients benefit from substantial subsidies. Spain's many local subsidy programs illustrate this: Most homeowners have no clue about what incentives exist locally. In fact Otovo annually compiles a 112 page report on what subsidies are available!
3. Watch out for administrative costs: Local subsidy programs may incur high administrative costs per subsidy received, which can reduce the overall effectiveness of the program. We find that local programs often cost a lot to hand out: Smaller in size, they have fewer projects to distribute the overhead cost among. Also national agencies tend to have more in-house competence about incentive designs and more resources to develop digital solutions. Optimising the program's efficiency and keeping administrative costs in check by having rights-based digital solutions, as done by the Norwegian national subsidy agency Enova SF , can help maximize the impact of the subsidy.
4. Coordinate with national programs: Overlapping subsidies from different government entities can lead to confusion for customers and unintended consequences. Coordination with national programs, such as aligning subsidy criteria and avoiding duplication, as seen when Norwegian county Vestfold introduced a 50% investment credit that meant the county effectively carried the 15% credit that was in place nationally on its own books.
5. Be proactive in addressing local needs: Local policymakers can proactively identify and address local energy needs that are not covered by national programs. Designing local subsidy programs that target specific regional requirements can be smart. Supporting battery storage in communities with lower grid access, such as the British Channel islands or Alpine municipalities could be good examples, or supporting trackers for solar to harness the plentiful summer sun above the Arctic circle could be another. Local policymakers that are ahead of national programs in terms of introducing new technologies will often see outsized effects fromt their efforts, and can expect budgetary relief when national agencies catch up. Don't underestimate the value of a good pilot!

Let's keep these lessons in mind when designing local subsidy programs for solar energy to drive positive impact and accelerate the transition to renewable energy! #RenewableEnergy #SolarPower #Sustainability #PolicyMaking #communitysolar #solarcommunities