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close this bookRural Energy and Development: Improving Energy Supply for Two Billion People (WB, 1996, 132 p.)
close this folderChapter five - Innovations in renewable energy
View the document(introduction...)
View the documentTechnical progress in using the solar resource
View the documentPolicies toward new renewable energy sources in rural areas
View the documentProgram development
View the documentPrices
View the documentCredit
View the documentTaxes and subsidies

Credit

As with some other forms of rural energy. the initial cost of acquiring the equipment constitutes a significant barrier to the widespread adoption of renewable energy sources The development of innovative financing schemes. including supplier credits and leasing arrangements. is thus a critical element of any renewable energy program Those who have studied the credit problem closely have concluded that subsidies are not needed, at least for small-scale applications for which renewables are competitive (Cabraal and Cosgrove Davies 1995)