Over the past few decades, as science and technology have grown, so has demand for products and energy consumption worldwide. Energy consumption plays an important role in the environmental and economic aspects of energy issues and its effects can not be ignored. The present study examines the effect of government incentive policies (subsidizing or purchasing electricity generated by the solar system) to use the solar system on the decisions of supply chain members, including a product manufacturer, the government, and a supplier of solar system equipment. The manufacturer buys the solar system from the supplier of these systems. The problem is divided into three different scenarios. In the first scenario, the manufacturer sells the electricity generated by the solar system to the government as a by-product and buys all the electricity needed to produce the main product from the government. In the second scenario, the manufacturer can generate the necessary electricity for the production process of his product by the solar system.
