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Why Do Federal Subsidies Make Renewable Energy So Costly?

May 31, 2017

Via: Forbes

On a total dollar basis, wind has received the greatest amount of federal subsidies. Solar is second. Wind and solar together get more than all other energy sources combined.

However, based on production (subsidies per kWh of electricity produced), solar energy, has gotten over ten times the subsidies of all other forms of energy sources combined, including wind (see figure).

According to the Energy Information Administration (EIA) and the University of Texas, from 2010 through 2013, federal renewable energy subsidies increased by 54%, from $8.6 billion to $13.2 billion, despite the fact that total federal energy subsidies declined by 23%, from $38 billion to $29 billion.

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