Wind still blows, sun still shines, but tax credits are fading away

[Elderberry]

Houston Chronicle by Chris Tomlinson May 24, 2019

The good news for the wind industry is that critics can no longer complain about the federal tax subsidies that have made its projects attractive.

The bad news is that the wind industry will have to compete with solar power, which still has years of tax credits left.

Federal production tax credits generate about $23 for every megawatt of electricity produced in a project’s first decade of operation. In a competitive wholesale energy market like Texas, that means a wind generator can bid negative prices and still make money from the tax credits.

Those subsidies, though, have done their job and kick-started a burgeoning technology. Wind energy generators have cut costs 69% in the last decade. In 2016, Congress voted to phase out the production tax credit for new projects by 2024.

The end of the PTC, as it’s best known, triggered a wind rush to get as many new projects in the ground as possible. But it’s also created anxiety and envy because solar developers got to keep their investment tax credit or ITC.

More: https://www.houstonchronicle.com/business/columnists/tomlinson/article/Wind-still-blows-sun-still-shines-but-tax-13883512.php

[IsailedawayfromFR]

Houston Chronicle by Chris Tomlinson May 24, 2019

The good news for the wind industry is that critics can no longer complain about the federal tax subsidies that have made its projects attractive.

The bad news is that the wind industry will have to compete with solar power, which still has years of tax credits left.

Federal production tax credits generate about $23 for every megawatt of electricity produced in a project’s first decade of operation. In a competitive wholesale energy market like Texas, that means a wind generator can bid negative prices and still make money from the tax credits.

Those subsidies, though, have done their job and kick-started a burgeoning technology. Wind energy generators have cut costs 69% in the last decade. In 2016, Congress voted to phase out the production tax credit for new projects by 2024.

The end of the PTC, as it’s best known, triggered a wind rush to get as many new projects in the ground as possible. But it’s also created anxiety and envy because solar developers got to keep their investment tax credit or ITC.

More: https://www.houstonchronicle.com/business/columnists/tomlinson/article/Wind-still-blows-sun-still-shines-but-tax-13883512.php

I can still complain as they were using my money to make an uneconomic project into something else.

And guess what - they were still uneconomic.

[Joe Wooten]

I can still complain as they were using my money to make an uneconomic project into something else.

And guess what - they were still uneconomic.

Yep, and with the passing of the PTC, the developers will be walking away from operating windmills as they need heavy maintenance work. In 5-7 years there will be a lot of eyesores as the wind companies trundle off into bankruptcy.

[Cyber Liberty]

Yep, and with the passing of the PTC, the developers will be walking away from operating windmills as they need heavy maintenance work. In 5-7 years there will be a lot of eyesores as the wind companies trundle off into bankruptcy.

The sob stories thumping the tub for more subsidies start on CNN/PMSNBC in 5...4...3....