U.S. Energy Subsidies

Energy Subsidies

The U.S. Energy Information Administration put a report our recently titled ‘Federal Financial Interventions and Subsidies in Energy in Fiscal Years 2016–2022.’

The four key findings were:

1. Beginning in FY 2016, tax expenditures rose rapidly and leveled off, but direct federal support remained steady until Congress recently enactedtemporary provisions.

2. During FY 2016–22, most federal subsidies were for renewable energy producers (primarily biofuels, wind, and solar), low-income households, and energy-efficiency improvements.

3. During FY 2016–22, provisions in the tax code were the largest source of federal financial support.

4. U.S. Department of Energy (DOE) loan guarantees were once again issued in FY 2022.

We visualized some of the data.

Total 2016-2022 Energy subsidies were $183.3 billion.

Tax expenditures were $129.1 billion, or 70% of the total.

Renewable energy subsidies were $83.8 billion, or 46% of the total, ranging from 40% to 53% annually over the timeframe.

Noticeable again renewable generation subsidies have massively exceeded transmission & smart grid subsidies.

93% of renewable subsidies were in the form of tax expenditures.

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