Say Goodbye to Solar Power Subsidies
Mark Chediak & Chris Martin for Bloomberg Businessweek: In 2016 the U.S. will learn if renewable energy can survive without government support. The most significant tax credit for solar power will expire at the end of 2016, and the biggest one for wind already has. These federal subsidies have provided wind and solar developers with as much as $24 billion from 2008 to 2014, according to Bloomberg New Energy Finance. That’s led to a 12-fold increase in installed capacity over the past decade, helping lower costs at least 10 percent each year.
Combined, wind and solar still generate less than 5 percent of electricity in the U.S. The subsidy cuts come as both industries face stiffer competition from ultracheap coal and natural gas. An NYSE Bloomberg global index of solar stocks, including those of big developers SunEdison and First Solar, has fallen about 35 percent since June. A comparable wind index is down 20 percent. Cont'd...
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