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Energy Secretary Calls for End to Perpetual Solar and Wind Subsidies

8 days ago
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Energy Secretary Calls for End to Perpetual Solar and Wind Subsidies

Key Insights

  • U.S. Energy Secretary advocates for ending long-standing subsidies for solar and wind energy, citing higher electricity costs and grid instability.

  • The Renewable Electricity Production Tax Credit, extended 12 times since 1992, has failed to deliver promised low-cost energy, with consumers paying more today.

  • During peak demand, solar and wind contributed minimally to the grid, highlighting reliability issues compared to natural gas, coal, and nuclear.

  • The proposed One Big Beautiful Bill aims to eliminate green tax credits and redirect investments toward reliable energy sources.

The U.S. Energy Secretary has called for an end to perpetual subsidies for solar and wind energy, arguing that these incentives have failed to deliver on their promises of lower costs and increased reliability. Speaking on June 28, 2025, the Secretary highlighted the Renewable Electricity Production Tax Credit (REPTC), introduced in 1992 and extended 12 times since, as a prime example of wasteful spending. Despite these subsidies, average home electricity bills have risen since 1992, even after adjusting for inflation.

During a peak demand event on Inauguration Day, solar and wind contributed just 3% and 1% respectively to the PJM Interconnection grid, which serves the Mid-Atlantic region. In contrast, coal, natural gas, and nuclear provided 93% of the power, underscoring the reliability gap between intermittent renewables and baseload energy sources. The Secretary emphasized that subsidies for wind and solar force providers to invest in additional dispatchable resources, driving up costs for ratepayers.

The proposed One Big Beautiful Bill seeks to eliminate green tax credits, including those under the Inflation Reduction Act, and redirect investments toward reliable energy infrastructure. The Secretary argued that if solar and wind are economically viable, they should compete without taxpayer support. Critics, however, warn that abrupt subsidy cuts could destabilize the renewable energy market and slow the transition to cleaner energy.