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Production incentives provide cash payments based on the number of kilowatt-hours (kWh) a renewable energy system generates.
To ensure project quality, payments based on a system’s actual performance are generally more effective than payments based on a system’s rated capacity.  Production incentives are also known as performance-based incentives. (Note that tax incentives based on the amount of energy produced by an eligible facility are categorized as “Corporate Tax Incentives.”)

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