Solar Panels Government Subsidies
Economics Question…PLEASE HELP ME?
Supply and demand question.
OK so the government decided to give out a subsidy for solar panels.
1. The rebate can be claimed by the Installers of the panels
2. The rebate can be claimed by the consumers
My question is, how does the outcome (the change in price and quantity of home solar panels) depend on whom the rebate is paid to? And under which scheme will home owners benefit more? (be careful not to confuse the market price with the effective price, i.e after the rebate has been received).
Ok so i know that when the installers receive the subsidy the supply curve shifts downwards and when the consumers get the subsidy the demand curve shifts upwards. CAN SOMEONE HELP ME OUT WITH THE ABOVE QUESTION PLEASE???
It is possible and even likely that the installer will keep the rebate and thus the price of the solar panels to the consumer will remain the same. There would therefore due to this factor be no influence on the demand.
If thew rebate is given to the consumer then the price of the solar panel installation would be lowered thus causing an increase in demand./
Japan’s Solar City of Future