Plan to kick start widespread solar energy use makes sense

Tax breaks, subsidies, and leasing programs are great ways to renewable energy investment, but there's an even better way - one that not only doesn't cost the government money, but would make money!  Because energy prices are volatile, anyone comparing the savings from an investment in renewable energy (e.g. solar panels) needs to have an idea of what fossil fuel prices would be.  Knowing that prices will remain high makes the renewable energy investment a great idea.  Therefore, the government should establish a floor below which prices won't fall.  There could be a variable tax that changes based on the market price of a commodity such as oil or coal.  If, due to increased supply, decreased demand, or other factors, oil prices fall below a certain predetermined level, the federal government would increase the tax, so that the price remains at or above the level determined to encourage investment in alternative energy.  This makes those energy sources competitive with fossil fuels while raising money for the government to use (either for upgrading the electric grid, investing in renewables, or just paying down the debt).

From The Jackson Sun:

Americans gradually are coming to grips with the reality that high energy costs are here to stay. There are myriad problems associated with fossil fuels that range from limited resources to increasing worldwide demand, negative environmental impact and rising costs. One alternative that is gaining attention is solar power. But up-front costs of installing solar powered systems has kept many people and small businesses from moving in that direction. The Renewable Energy Through Leasing Act could change that.
The bipartisan legislation is sponsored by U.S. Sens. Lamar Alexander (R-Tenn.), Sheldon Whitehouse (D-R.I.) and Mark Udall (D-Colo.). It would make leasing solar installations practical for homeowners and small business owners.
Installing solar equipment on a home or small business can run into tens of thousands of dollars, even on new construction where the cost can be amortized over the life of a home mortgage. But retrofitting a home or small business means high equipment and installation costs must be paid up front. That prices most people out of the solar energy market. The REAL Act, if passed by Congress, could jump start the installation of solar powered systems across the country.
Leasing equipment is a standard business practice and used by individuals for expensive items such as vehicles. For a lease to work, the leased equipment must have buyback or residual value that is used to calculate lease payments. Because solar powered systems are a relatively new product, there is no way to accurately determine the value of the equipment. The REAL Act would establish a system of insurance to guarantee the equipment value. The insurance would be paid for through premiums paid by solar manufacturers and vendors.
Home solar installations can produce electricity and be used for heating and to produce hot water for home use. Excess electricity not used by the homeowner is sold to local utility companies and redistributed. This helps bring down the long-term cost of solar installations.
Opening the door to widespread homeowner and small business use of solar energy could be a boon to the solar energy industry. It would help bring down costs, reduce greenhouse gasses and help reduce the nation's dependency on foreign oil. Solar technology is evolving rapidly, and solar panel efficiency has greatly improved in recent years.
Because the REAL Act requires insurance premiums to be paid to guarantee the solar equipment value, the Congressional Budget Office reports there would be no cost to taxpayers to create such a system.
The REAL Act is a creative way to spur development and growth of the solar energy industry while helping consumers, reducing American oil dependency and improving the environment.