States are turning to more market based incentives as opposed to rebates, such as the SolarRenewableEnergy Credits (SRECs), a cap and trade like credit granted to firms or individuals who have installed solar capacity, which can be sold on spot markets.
Currently, it offers a 30 percent tax credit for any business investing in solarenergy and a renewableenergy grant equal to that 30 percent to businesses purchasing solar power systems.
One of the government incentives Mr. Reid supported for the renewable-energy industry was a 30% investment tax credit for companies in the solar-energy business.