How Much Federal Subsidy Goes to Renewable Energy?
Tuesday, November 17th, 2009The US Government subsidizes all forms of energy production, from a $10 billion cap on nuclear disasters to tax credits and cash grants. Where does renewable energy fall into that sizable outlay of money? According to Renewable Energy World, only so-so.

Types of Federal Subsidies Available
- Tax Credits: Solar investment and production credits fall into this category (i.e. put solar on your roof and we’ll reimburse up to %20 with tax credits). Ethanol and Biofuel also fall into this category. This is the largest method of subsidy, comprising 45% of all government energy assistance between 1950 and 2003, and a peak of 65% in 2006.
- Cash Grants, Loan Guarantees and Others: These accounted for about 20% of federal support between 1950 and 2003, and 29% in 2006. The ARRA Renewable Energy Cash Grants fall into this category. Essentially, this type of subsidy is a handout or a loan with very agreeable terms to ensure the success of the recipient. (more…)
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The U.S. economy finally experienced a little growth in the third quarter of 2009, taking a small 3.5 percent step in the right direction. While this modest growth doesn’t have consumers or economists jumping for joy, it is considered a harbinger of sunnier days to come despite the fact that a surplus of new jobs is not accompanying the growth, with national unemployment now above 10 percent.
