With current subsidy methods, it costs around 3 cents / kWh of subsidy to get wind turbines built [2011 update, I'm now hearing from insiders that more like a 5 cents /
kWh subsidy may be required].
There is a $.022 per
KWH subsidy from federal government for the next ten years.
Not exact matches
Thirdly, the generation tariff means that the system owner is paid a
subsidy payment for every unit of electricity (
kWh) that is generated.
The Feed - in - Tariff
subsidy for a 50kW turbine is currently 25.5 p /
kWh, more than 5 times the value of the electricity.
Subsidies for wind power The most obvious
subsidy is the production tax credit (PTC) which began at 1.5 cents /
kWh in 1992 and which increases at the rate of inflation.
Although turbine costs and financing costs are difficult to pin down, the initial calculation of 3 cents /
kWh is consistent with the fact that wind projects get 2 cents /
kWh in PTC
subsidy, 0.5 cents /
kWh in accelerated depreciation, and often but not always, a bit more from RPS requirements.
This leaves the government holding the bag for just 0.9 cents /
kWh, and that is the cost of this form of
subsidy.
By evaluating a different
subsidy method, a more accurate social cost can be found and it is only 1.2 cents /
kWh.
In fact, discussion with those close to the industry suggest, that wind turbines are actually being built with less than 3 cents /
kWh of
subsidy.
According to an article in today's New York Times, even without
subsidies, wind power is often cheaper (as low as 3.7 cents per
kWh) than coal (low of 6.6 cents per
kWh) or natural gas (low of 6.1 cents per
kWh).
A thousand times that much comes to $ 6.30 in
subsidies per
KwH of solar PV.
$ 630B divided by that many watt - hours equals 0.63 cents of
subsidies per
KwH.
To prevent coal
subsidies causing chaos in other EU countries, the European Commission proposed a CO2 threshold of 550 grams per
KWh of electricity to be eligible for receiving capacity payments (public money to remain online).
According to the Wikipedia article on wind power generation in Iowa, the industry is subsidized by a one cent per
KwH tax credit, plus property and sales tax breaks for generation facilities and equipment, plus unenumerated but presumably meaningful support by taxpayers of other states in the form of federal
subsidies.
Nuclear power has multiple
subsidies in the form of: - direct payments for new nuclear plants of 2.3 cents per
kWh generated for the first ten years (in the US), — this is US$ 2 billion for a 1000 MW plant after ten years operation, - complete indemnity under the Price - Anderson Act for harm caused by a radiation release (above a modest insured amount), - changes to safety regulations to allow continued operation, - new plant construction loan guarantees, - direct
subsidies for existing plants to keep operating as a jobs - protection program, and others.
Nuclear
subsidies (and I mean real, nuclear - specific
subsidies, not the fact that the tax code allows depreciation of all capital equipment) are much lower per
kwh than those for wind and solar.
In the 2014 - 2015 procurement year, ComEd and Ameren paid a
subsidy of about 1.15 cents per
kwh for Renewable Energy Certificates under the RPS law;
3) State
subsidies such as New Mexicoís $ 0.01 per
kWh state tax credit for electricity from «wind farms» and industrial development bond financing.
What we at GLF do not like as much about the Solar Roofs Program is that it rewards installed capacity (by providing
subsidies on a per W basis) and not actual solar power generation (on a
KWh basis).
To accelerate consumer uptake, in June the government approved Feed - In Tariff (FiT)
subsidies under which utilities will pay 42yen (53 U.S. cents) per
kWh for solar - generated electricity, double the tariff offered in Germany and more than three times that paid in China.
OCC's evaluation of NEM found it to cost non-DG owners «well over $ 0.20 /
kWh when you factor in the cost shift and the programmatic costs and other available
subsidies,» she reported.
In Illinois, the
subsidy required to keep the Clinton and Quad nuclear plants open amounts to 1 cent /
KWh, a small fraction of the 2.3 cents /
KWh Production Tax Credit (PTC), one of several
subsidies available for renewable sources.
Compare to the 10c + per
kWh in
subsidies you are demanding for solar.
This analytical document shows that Uganda's GET FiT Solar Facility will provide a performance - based
subsidy of USc 5.37 /
kWh to lower the cost to Ugandan consumers of the electricity produced from four 5 MW solar plants bid by two developers at an average price of USc 16.37 /
kWh.
* Cumulative
subsidies over cumulative energy production through 1999 came to $ 0.012 /
kWh for nuclear, $ 0.51 /
kWh for solar, $ 0.04 /
kWh for wind.
Aided by the restart of the national
subsidy program for residential solar power in January 2009, and a feed - in tariff program that was also started in November of the same year, which purchases excess energy at 42 Yen /
kWh for installations smaller than 10kW * 2, it is expected that up through the end of March 2012 more than one million homes in Japan will have installed solar power.
Nuclear
subsidies are estimated to be at least 0.7 cents per kilowatt - hour (
kWh).
Renewable energy
subsidies will rise from 6.35 $ ct /
kwh to an astounding 7.3 $ ct /
kwh in 2017.
While there have been a few bids of 2 - 3 cents per
kWh for utility - scale renewable power, they include federal renewable energy
subsidies that will soon end and do not reflect all of the costs of a renewable energy grid.
Thus Energy Minister Greg Barker had said that the new 21p /
kWh FiT for 4kW or under «will attract the highest level of any
subsidy of mainstream technologies».
Quickly the discussion turned to AWEA's favorite
subsidy, the wind Production Tax Credit (PTC), the wind industry's 2.3 cents per
kWh handout from the American taxpayer.