by Jon Sanders
Director of the Center for Food, Power, and Life, Research Editor | John Locke Foundation
Do this math:
Or, as described by the N.C. Dept. of Environment and Natural Resources in its March 2015 Energy Report,
Solar energy investors with sufficient tax liability may combine the 35 percent state ITC with the 30 percent federal ITC and the bonus accelerated depreciation schedule to return almost all of their investment within six years and may receive 57.8 percent of their investment back through tax credits and depreciation deductions within 12 months of placing into service. For an investor subject to a 35 percent federal tax rate and a 5 percent state tax rate, the [following] demonstrates how much of the solar energy investment is returned each year through tax incentives.
It’s no wonder they act as if any change in their tax credits and REPS purchase mandates would devastate them. They aren’t self-supporting at all.
Despite decades of promises to the contrary, they have no plans to be a self-supporting, real industry.
Theirs is an industry whose business model is proudly based, not on capturing customer loyalty and winning investors banking on solar being a competitive industry in its own right, but on capturing legislators’ favors. Their long-term goal is to remain on perpetual government life support.
More strings, more!