subsidies

Loss of production tax credits brings big wind chill to the cooling subsidy-dependent market

The recently ended wind power production tax credit was costing the U.S. taxpayer at least $12 billion a year -- and if the claimed number of jobs was indeed created by these subsidies, they were underwritten at about $32,000 per job. By contrast, so-called subsidies (which are actually tax preferences) for fossil fuel production cost about $2,100 per job. Meanwhile, wind power is now an average $54 per megawatt-hour -- up from $37 in 2005, and much higher than fossil fuel power. There is good news: We are nowhere near as bad off as many European countries that have subsidized wind power production.

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Larry Bell

|2014-02-13T23:44:30-05:00February 12th, 2014|4 Comments

Rooftop solar: welfare for the wealthy?

Net metering has been around since the early 1980s when solar panels were expensive and few people had them. But the dynamics changed drastically when states began passing renewable portfolio standards (RPS) that required predetermined percentages of electricity be generated from renewable sources—some even specified which sources are part the mix and how much of the resource was required. For example, in my home state of New Mexico, the Diversification Rule requires that 1.5% of the RPS must be met by “distributed generation” (read: rooftop solar). Arizona requires 30% of the RPS be derived from “distributed energy technologies” (once again, rooftop solar).

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Marita Noon

|2013-09-09T11:47:40-04:00September 9th, 2013|3 Comments

Subsidies to wind and solar dwarf those to “big oil” — but wait! There’s more!

Oil depletion allowances, the first category, principally apply to small independent producers, with similar benefits available for all mineral extraction, timber industries, etc., allowing them to pass the depletion on to individual investors. Large integrated corporations haven’t been eligible for these since the mid-1970s. Expensing indirect drilling costs involves writing off expenses in the year incurred rather than capitalizing them and writing them off over several years. Closing this “loophole” would only change the timing of taking he expense, not the total amounts of the so-called “subsidy.” The third category, a tax credit for taxes paid to foreign nations, is available for all international companies. This provides an offset to foreign taxes, often paid as royalties, so that the companies aren’t taxed twice on the same income.

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Larry Bell

|2013-07-08T18:39:50-04:00July 8th, 2013|6 Comments

Solar subsidies just tip of renewable cost iceberg

The collapse of Solyndra solar a while ago focused much attention on the cost of so-called renewable energy. But according to James Rust of the Heartland Institute, subsidies for solar are just the tip of the expensive renewables iceberg . . .

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Craig Rucker

|2013-06-18T17:17:17-04:00May 31st, 2013|Comments Off

Don’t be fooled: a carbon tax will hurt the poor the most!

From a social cost perspective, carbon taxes are, by nature, regressive, meaning that they inflict largest pain burdens upon low-income households. As Marlo Lewis observes, this presents a “Catch-22” dilemma for any Republicans. If on one hand, they offer to support a carbon tax in exchange for cuts in corporate or capital gains taxes, they will be accused of seeking to benefit the rich at the expense of the poor. On the other hand, any “carbon dividends” paid out to offset higher energy price burdens on poor households will create a new class of welfare dependents …a costly consequence for the general public that Democrats are much less inclined to worry about.

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Larry Bell

|2013-04-16T12:28:27-04:00April 16th, 2013|4 Comments

Virginians will get burned by this solar program

A select group, described as “sophisticated investors” by one solar panel installer, was concerned with return-on-investment issues and maximizing their multiple, tax-advantaged solar panel installations. They requested that the 15 cent/kWh buy-rate be increased by Dominion to offset the anticipated Federal and State income tax burden. Otherwise, the net after-tax-return would be about the same as for the current net energy metering plan, thus there would be no monetary incentive to participate in the solar plan.

By

CFACT

|2013-02-28T15:32:38-05:00February 27th, 2013|Comments Off

The PTC should be SOL

National Journal: The U.S. has a $16 trillion national debt that is growing nearly exponentially. Precious federal dollars ought not be wasted to promote production of high-cost energy. Let the wind production tax credit expire with the old year.

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Duggan Flanakin

|2012-12-19T10:03:16-05:00December 18th, 2012|Comments Off

Time to end tax credits for wind energy

Senator Lamar Alexander (R-TN) ... said the nation’s fiscal situation has become so dire that the government can no longer afford to maintain a wind power production credit that has been in place since 1992: “I think there is certainly the largest realization that we have ever had that it’s time for it to end.”

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Marita

|2012-11-20T17:05:04-05:00November 20th, 2012|2 Comments

Falling Leaf: Consumers not buying

Nissan abandons its 2012 sales goals. Short range, high cost, deteriorating batteries, coal fired electricity, potential bricks and a drain on the treasury -- electric cars have much to overcome before consumers embrace them.

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CFACT Ed

|2012-11-16T18:12:34-05:00November 16th, 2012|Comments Off

Wind-Power Subsidy in Congressional Crosshairs

Growing disillusionment over lavishing taxpayer dollars on dubious renewable-energy subsidies has prompted dozens of House members to ask Speaker John Boehner to allow the Production Tax Credit (PTC) for the wind industry to expire at the end of the year.

By

Bonner Cohen, Ph. D.

|2012-11-19T16:08:16-05:00November 13th, 2012|1 Comment

A123 – Another green energy company goes bust

Waltham, Massachusetts battery company A123 is bankrupt. A123 which makes batteries for electric vehicles, was awarded a $249 million federal grant which does not need to be repaid as would a loan.

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CFACT Ed

|2012-11-13T17:05:09-05:00October 16th, 2012|3 Comments

Al Gore’s hundred million dollars

Al Gore, who left public office with an estimated net worth of two million dollars, is worth an estimated 100 million dollars today according to the Washington Post. Fourteen green-tech firms in which Gore invested received or directly benefited from more than $2.5 billion in loans, grants and tax breaks, part of President Obama’s historic push to seed a U.S. renewable-energy industry with public money. Green energy bankruptcies are now a regular feature on the business page. Witness today's bankruptcy announcement by Waltham, Massachusetts based battery maker A123 which won't be paying back it's $249 million federal grant. Green investors like [...]

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CFACT Ed

|2012-11-13T17:04:50-05:00October 16th, 2012|Comments Off

Will SoloPower be another Solyndra?

SoloPower is set to get a $197 million federal loan guarantee. The more the plans fail, the more the planners plan.

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|2012-10-15T17:03:05-04:00September 27th, 2012|Comments Off

Time to terminate Big Wind subsidies

Unprecedented! As bills to extend seemingly perpetual wind energy subsidies were again introduced by industry lobbyists late last year, taxpayers finally decided they’d had enough.

By

Paul Driessen

|2012-11-01T14:11:24-04:00May 8th, 2012|1 Comment