A utility company is trying to increase renewable sources of electricity. It would like to encourage customers to install solar panels or wind turbines. What would be one way the company could encourage this change using incentives?

Question

Quizplus · Accepted Answer

All the options listed are forms of incentives that could encourage customers to install renewable energy sources. Offering a reduction in electricity rates (A) and a credit (C) directly reward customers who install renewable energy sources, while increasing fees on those who do not (B) indirectly encourages the installation of renewable sources by making it financially disadvantageous to avoid doing so.

A Utility Company Is Trying to Increase Renewable Sources of Electricity