This study aims to determine which individuals in the United States are most likely to accept tax incentives for purchasing and using solar energy panels. Researchers will survey homeowners across the US by attaching a questionnaire to income tax returns. The survey will collect demographic data and opinions on solar panels and tax incentives. Researchers hypothesize that wealthy individuals in sunnier regions will be most inclined to purchase solar panels when incentives are provided, due to the high upfront costs. Analyzing responses may reveal relationships between demographics and interest in solar panels. The goal is to identify how tax incentives could boost solar panel adoption rates.

1. The Demographic Influence of Solar Energy Panels and Tax Incentives
Max Picard
Writing 102- O
Benedictine University
April 25, 2014

2. Picard2
Abstract:
Tax incentives are a known service to reduce the price of solar energy panels. What is not
known is who accepts tax incentives to implement the panels. Therefore, the question asked is:
“Which individuals, in the United States, are more likely to accept tax incentives for the
purchase and use of solar energy panels?” Based on the expensive price and need for sunlight, it
is expected that the more wealthy individuals of regions with the most sunlight will most likely
purchase solar energy panels. So to test this theory, a survey will be attached to the income tax
form received by homeowners in the United States. In the survey, homeowners will be asked to
answer questions regarding demographics and interest in solar energy panels to decipher who
really is most inclined to purchase solar energy panels.

3. Picard3
Introduction:
In today’s world, the impact homeowners and businesses have had on the environment is
undeniable. Energy consumption is at an all-time high, which is unfortunately having an effect
on the world in which we live (1). Currently the primary energy source in the world revolves
around the burning of nonrenewable fossil fuels, such as coal, natural gas, and oil (2). The issue
with the burning of fossil fuels is not only that they are nonrenewable but that they are very
harmful to the environment.
Reliance on fossil fuels results in poor energy efficiency and misuse of precious
resources. This heavy reliance on fossil fuels leads to the infamous greenhouse effect (3). This is
created by the production of atmospheric carbon dioxide and other gases that become trapped in
the atmosphere and generate temperature changes that affect the environment (4).
In order to prevent wasteful energy consumption, alternatives must be considered.
Due to poor energy efficiency, environmental pollution occurs and creates issues to both climate
and human health. Thus, actions are necessary, especially in the development of cleaner, more
efficient, and unlimited energy sources. Renewable energy sources are a highly debated topic,
with the greatest emphasis being placed on the reduction of energy consumed and fossil fuels
burned (1).
Utilizing renewable energy sources is one way in which energy consumers can use
energy in a more environmentally-friendly way. Renewable energy sources include biomass,
geothermal, photovoltaic, solar, and wind energy. However, the issue with renewable energy
sources, in particular solar power, is that the installation process is expensive to develop and
sustain. In this research proposal, solar energy is the sole renewable energy source considered. In

4. Picard4
order to encourage the switch to solar energy usage, tax incentives have been utilized to lessen
the initial investment in solar energy panels (5).
In a previous experiment, the addition of tax incentives and interest-free loans for the use
of renewable energy products was studied. During the experiment, a survey questionnaire was
distributed throughout a small community in Florida. The questionnaire asked to provide the
financial incentives needed for the residents to consider the use of renewable energy products,
the residents’ opinions on energy conservation, and the demographics and housing characteristics
(2).
The majority of the respondents indicated that they were white, well-educated, and
middle age. Most respondents, about 78 percent, had received a college degree, which is much
higher than the State of Florida and national average. The average age of respondents was 53
years old and featured more upper-class residents than those of the lower-class. In terms of solar
panels, less than half of the respondents stated they would purchase solar panels if they received
half of their investment back through tax credits (2).
It would be useful if further research on renewable energy sources focuses on the
identification of the population likely to accept tax incentives for the purchase and maintenance
of solar energy panels. The research done in this previous experiment focuses on a small
population located in the State of Florida. In addition, there were few responses to the survey that
contributed to the results found in the experiment. Thus, further research must be performed in
order to grasp more well-defined statistics for the State of Florida and for the generalization to
the United States. This need for further research leads to the research question, “Which
individuals, in the United States, are more likely to accept tax incentives for the purchase and use
of solar energy panels?”

5. Picard5
Aims of the Proposed Study:
In the Energy Plan of 2009 developed by President Obama and his administration, the
goal for a cleaner environment is to have 25 percent of all electricity be generated from
renewable energy sources by 2023. Researchers, though, have determined that the United States
is projected to be about 10 percent short of that goal. Included in the results is that solar panels
are expected to grow the least of the five renewable energy sources researched [wind, solar,
hydroelectric, geothermal, and biomass]. Hence, researchers have suggested an increase to the
funding and provision of incentives to current and future users of renewable energy sources (6).
In the case of solar panels, the installation costs and maintenance are more expensive
than the other renewable energy sources (5). Additionally, solar panels rely on the environment
and sun exposure to be most effective. Generally, southern states receive more sunlight than the
northern states. This means that there is more time during the day to capture the sun’s energy and
convert it to electricity or other uses. As a result, states such as Arizona, California, Florida, and
New Mexico feature more solar panel usage because of the vast amount of sunlight they receive.
Thus the research hypothesis is: “When provided with incentives for the use of solar panels, the
more wealthy residents of regions that receive greater amounts of sunlight are most inclined to
purchase solar panels.”
A primary issue with solar panels is the cost, and the lack of growth in this industry is a
direct result of the expense associated with it. The up-front cost of solar panels is expensive,
which leads to consumer reluctance to make the switch to solar energy. If consumers cannot
identify the advantage of using solar power over their current source of power it is unlikely they
will adopt solar energy. Most sources of energy are supplied readily and cheaply, whereas the
installation of solar panels is neither abundant nor inexpensive. This initial cost-benefit

6. Picard6
imbalance may explain why most individuals, especially those in the low or middle-classes, do
not look to renewable energy sources as their source of power (7).
In order to entice people to purchase solar panels, tax incentives are a must for most
individuals to afford the cost. This strategy hopes to encourage growth in the solar panel industry
by compensating the initial investment cost with future expected savings. The incentives will
allow for a lower investment cost but not necessarily make the solar panels more affordable for
the average American. This is why a nationwide study must be conducted. It is to identify the
consumer responses towards the availability of solar panels and to what extent tax incentives
must be provided in order to make the investment affordable.
Materials and Method:
The materials needed for this study include: survey questionnaire, government grants to
revise the income tax form to include an attached survey [electronic or paper], 4 researchers,
computer, and computer software to store, analyze, and manipulate the data.
In order to determine who it is that accepts the incentives to install solar panels, a similar
experiment to the one completed in Florida will be expanded upon. In the experiment in Florida,
a small population was surveyed by mailing out a questionnaire to a random 4000 residences.
However, there was a low response rate to the survey and concern for an improved sampling
strategy. So this study will be used to broaden the surveyed area and gauge the interest and
details of more people.
The study will run through January and April, during tax return season. During this time,
homeowners will receive a survey that is included with their income tax return. The survey,

7. Picard7
which is to be made available through the aid of governmental grants, will consist of numerous
questions. The questions asked will reveal the homeowner’s demographic conditions, views on
energy conversion, outlook on purchasing solar panels, and the role tax incentives play in
making solar panels affordable and appealing.
Of all of the survey’s aspects, though, the demographic information is the most important
element to the researchers. A sample of questions to be asked include: age, race, gender, marital
status, education, income, family size, type of community, and political status and label. The
answers to these questions are the basis of the study because these characteristics are the
independent variables of the experiment.
Upon completion of the surveys, the results will be analyzed by the group of researchers
performing the study. The demographic information that the homeowner’s share in the
interviews will be sorted and configured with their interest in purchasing solar panels with tax
incentives. With this information, there is hope to establish a relationship between the
demographics and interest in solar panels provided by the homeowner. This relationship will
provide further knowledge in determining who generally accepts the incentives for solar panel
usage, as well as display which people show the greatest interest in purchasing solar panels.

8. Picard8
Budget:
4 Researchers at $15/hour (10 hours per week for 16 weeks) = $9,600
Computer with Software = $1,000
Survey Questionnaire (paper or electronic) = Unknown
Government Grants to attach survey to income tax returns = Unknown
Total Price $11,600 (minimum)

9. Picard9
Reference Cited:
1. Chun-sheng Z, Shu-wen N, Xin Z. 2012. Effects of household energy consumption on
environment and its influence factors in rural and urban areas. Energy Procedia. 14: 805-
811.
2. Bell L, Horner M, Sulik J, Zhang J, Zhao T. 2012. Consumer responses towards home
energy financial incentives: A survey-based study. Energy Policy. 4(31):291-297.
3. Valero A, Valero A. 2012. What are the clean reserves of fossil fuels? Conservation &
Recycling. 68: 126-131.
4. Allam R, Palmer M, Brown G, Fetvedt J, Freed D, Nomoto H, Itoh M, Okita N, Jones C.
2013. High efficiency and low cost of electricity generation from fossil fuels while
eliminating atmospheric emission, including carbon dioxide. Energy Procedia. 37: 1135-
1149.
5. Avril S, Mansilla C, Busson M, Lemaire T. 2012. Photovoltaic energy policy: Financial
estimation and performance comparison of the public support in five representative
countries. Energy Policy. 51: 244-258.
6. Daim T, Harell G, Hogaboam L. 2012. Forecasting renewable energy production in the
US. Foresight. 14(3):225-241.
7. Faiers A, Neame C. 2006. Consumer attitudes towards domestic solar power systems.
Energy Policy. 34(14): 1797-1806.