A local government is considering implementing a policy to promote solar energy adoption among residents. They are debating between offering financial incentives, investing in public solar installations, or establishing regulations that mandate solar panel installation for new buildings. Which approach should the government prioritize to effectively balance economic viability and environmental sustainability?

The best first step is to give residents a financial incentive, such as a tax credit or rebate, because it lets people choose solar panels when it makes sense for them and keeps costs low for the government. This approach encourages many households to install panels without the government having to spend large sums on public projects or enforce strict rules that could delay construction. Over time, the increased use of solar will reduce the need for expensive public installations and will not burden builders with costly new‑build mandates. For example, a city that offered a $1,000 rebate saw a 30 % jump in rooftop solar in a year, while builders reported no extra costs. By starting with incentives, the government can grow solar use gradually, ensuring both economic and environmental goals are met.