Solar subsidies

We often hear that renewable energy is growing faster than other areas. From that you might assume that this is a money making business but recall in 2013 the state of Minnesota passed a law saying that power companies must get 1.5% of their power from solar by 2020. Yet the state’s new solar standard, signed into law Thursday by Gov. Mark Dayton, will force four investor-owned electric utilities to generate 30 times more solar power than they do today. Solar power remains more expensive than electricity generated from conventional sources despite generous government subsidies estimated at more than $39 billion annually. The subsidies include among other things a 30% tax credit which was extended to 2019 when congress agreed to lift the ban against oil exports. A tax credit is not a deduction but a direct subtraction from the taxes owed. It is not unusual for the government to provide help to new industries but when articles about solar are written they often forget to mention the subsidies while showing the reduced cost. This is similar to the Obamacare mandate where the law demands that you buy something and then the law helps you to pay for it,