Research Proposal: Government Subsidies for Solar Energy - Literature Review and Methodologies

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Research Assignment

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Table of Contents
Introduction................................................................................................................................2
Project objective.........................................................................................................................2
Project scope..............................................................................................................................2
Literature Review.......................................................................................................................3
Research Questions....................................................................................................................5
Primary question....................................................................................................................5
Secondary question................................................................................................................5
Research design and methodology.............................................................................................7
Qualitative Research..............................................................................................................7
Quantitative Research............................................................................................................7
Potential findings.......................................................................................................................8
Research Limitations..................................................................................................................8
Time Schedule............................................................................................................................8
Conclusion................................................................................................................................10
References................................................................................................................................11
List of Figures
Figure 1: Solar System Installation in Australia since 2012......................................................5

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Introduction
The development of the solar energy market is motivated due to the increase in
environmental pollution and provision of government incentives and tax rebates in order to
install solar panels. Moreover, reduction in water footprints linked with solar energy systems
has stimulated its requirement in the sector for the power generation. In addition, the
concentration on solar power system is increased due to demand for solar power towers in
order to generate electricity. On the other hand, the role of the photovoltaic (PV) storage is
vital to amplify the capability of PV systems to restore the active sources of conventional
(Hossam Eldin, Farghly and Refaey, 2015). This paper will cover the project objective and
project scope in the context of the chosen topic that is ‘What are the past and current
government subsidies/rebates available on solar energy’. The literature review will entail
various articles, books, and online sources in order to elaborate the literature problems, gaps
opportunities, and hypothesis. The research will cover research methodologies section by
describing the qualitative research and quantitative research. The research limitations will be
elaborated under this research proposal.
Project objective
The objective of this research is to evaluate what are the past and current government
subsidies/rebates that are available on solar energy and analyse their impact on the decisions
of customers and companies. This research also aims to identify whether the sales of solar
energy has increased or reduced due to these rebates.
Project scope
The scope of this research is wide which include rebates given by the Australian government
and comparing them with other countries to determine their effectiveness. The scope of this
research will include the impact of subsidies/rebates on sales of solar energy between
customers and companies.

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Literature Review
As the issue of climate change and global warming become prominent, the importance of
adaptation of renewable energy sources has increased substantially. Individuals and
corporations are focused on adopting solar energy into their daily operations to reduce their
carbon footprint. Stem (2014) provided that in order to encourage people and organisations to
install solar panels as an alternative energy source, the government offers many subsidies or
rebates to them. According to Halawa, Chang and Yoshinaga, 2015)The federal government
of Australia offers Small-Scale Technology Certificates (STCs) to reward those homeowners
that have installed renewable energy sources into their houses which include solar power
system. The STCs are given to individuals based on their location and the size of their energy
efficiency system. The number of STCs received by individuals depends upon where they
live and other factor s. A 1.5 KiloWatt (kW) solar power system installed in Melbourne
would receive $26.6 STCs which can be traded for a spot price of $38.05, although this
prince can fluctuate (Finder, 2019). Thus, a homeowner can save approximately $4,500 by
installing a 1.5 kW solar system in the house. Qadir et al. (2013) provided that the STCs are
rebates which were given for a long time by the government; however, currently, the
government has introduced new rebates called Feed-in tariffs in which the electricity
companies are forced by the government to pay homeowners that have installed solar panels
in their houses.
Burtt and Dargusch (2015) stated that in this system, the government decides the amount on
each KiloWatt per hour (kWh) which is given to the homeowner for using the electricity that
is generating through solar panels. The homeowners can then reimburse each kWh of solar
electricity which is produced by the system. Similar subsidies are given to homeowners by
the government in the United Kingdom where homeowners also receive the feed-in tariff for
the electricity which they generate through solar panels. In the case of the United States,
people who install solar energy system receive tax breaks and financial incentives which
allow them to reduce their net costs by 30 to 50 percent (EnergySage, 2019). The Australian
government has also provided commercial rebates for companies for installing a grid-
connected power system to run their operations. Chapman, McLellan, and Tezuka (2016)
stated that organisations could obtain considerable saving through the country’s solar credit
discount which allows them to receive an upfront refund for their purchase. Moreover, small
businesses that an annual turnover of less than $2 million can apply for a tax break of $6,500