Free Market Energy Report
Free Market Energy Report
Renewable EnergyRenewable Energy Subsidies

Study: The High Cost of Renewable Energy Subsidies

Bill Peacock

Federal, state and local subsidies for renewable energy are undermining the reliability of the Texas electricity market. And Texans are paying a high price for the privilege of a less reliable market. Since 2006, wind and solar generators in Texas have received about $19.4 billion from taxpayers and consumers. It is estimated they will receive another $15.9 billion over the next decade. Texas policymakers should eliminate subsidies for renewable energy in order to ensure an energy abundant future for Texans.

Key Points

  • Texas began subsidizing renewable energy in 1999 with renewable energy credits (RECs).
  • In 2005, the Texas Legislature expanded RECs, authorizing the PUC to build the $13 billion CREZ lines for wind and solar.
  • Since 2006, wind and solar generators in Texas have received about $19.4 billion from taxpayers and consumers.

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Bill Peacock

Bill Peacock, the editor of Free Market Energy Report, has spent the last 30+ years fighting for liberty at the local, state, and national level by combining his love for theology, economics, and public policy. He has worked in the Texas Legislature, with two state agencies, and for the Texas Public Policy Foundation. His work on energy issues spans more than 20 years. Bill wrote a chapter, The Energy-Climate Connection, in the book, Climate and Energy: The Case for Realism. Bill also writes at ExcellentThought on Substack, about the intersection of faith, culture, and public policy. In his work and writing, he focuses on various issues including energy, regulatory, and fiscal policy, property rights, public education, and the relationship between faith, free markets, and economic prosperity. Bill lives with his wife and son in the Texas Hill Country where they attend a Reformed church.