The federal government is subsidizing wind and solar energy , which is why they appear competitive with fossil fuels on paper .
VAN NOSTRAND : Utility-scale solar arrays currently benefit from a 26 % investment tax credit , which is being phased down to 10 % in 2024 . Wind generation currently receives a production tax credit of 18 cents / kilowatt-hour , or $ 18 per megawatt-hour , which is being phased out after 2021 . The most recent calculated Levelized Cost of Electricity from the Energy Information Administration shows that even without the subsidies , however , utility-scale solar and onshore wind facilities are cheaper than coal- or natural gas-fired generation . Federal subsidies for renewable energy projects receive undue attention as a result of the frequent legislative action necessary to extend them from time to time . In contrast , subsidies favoring fossil fuels such as depletion allowances , deductions for intangible drilling costs and credits for clean coal investments are permanent provisions in the Internal Revenue Code and receive very little attention . According to a study by the International Monetary Fund , subsidies for fossil fuels in the U . S . in 2017 were $ 649 billion , including the negative externalities caused by fossil fuels such as health care costs and climate change adaptation .
WRIGHTSTONE : Wind turbines are unlikely to be economically viable without government subsidies anytime soon , if ever , according to a recent report by PPHB Energy Investment Banking .
Solar and wind drew the largest federal subsidies for the amount of electricity generated in 2013 —$ 231 and $ 35 per MW / hour , respectively . The amounts for nuclear , natural gas and coal were $ 2 , $ 0.60 and $ 0.57 , respectively . Solar and wind simply cannot compete in a free market with fossil and nuclear . A natural gas well will produce 600 % more electricity over a 30-year period than will an equal investment into solar or wind , according to the Manhattan Institute .
Many states surrounding West Virginia have renewable portfolio standards , making them more competitive in business . West Virginia ’ s lack of access to renewable energy sources will keep companies from locating to the state .
VAN NOSTRAND : Thirty states — including Ohio , Pennsylvania , Maryland and Virginia — have renewable portfolio standards that stimulate the development of renewable energy resources within their state . Five other states have clean energy standards , which require their electricity supply to be zero carbon . Those states with a commitment to renewable energy are well-positioned to attract large employers , many of which have corporate sustainability goals requiring their electricity to be supplied by renewable resources . For example , over 200 companies have joined RE100 , in which they commit themselves to going 100 % renewable for electricity by a certain year . West Virginia , with its 92 % coal-fired electricity supply , will be unable to attract the employers with renewable energy goals . of living and manufacturing and make it harder for people to find work . These were the findings of a 2016 study by the Rhode Island Center for Freedom and Prosperity . According to the report , the mandates adversely affect Pennsylvania and by 2025 will have raised energy costs by $ 700 million and eliminated 11,400 jobs . After more than a decade of subsidizing alternative energy sources , wind and solar produced about 2 % of Pennsylvania ’ s net electric generation in 2020 , according to the U . S . Energy Information Administration .
Solar panels and wind turbine blades are nonrecyclable , and the heavy metals used to make solar panels are harmful to the environment during the disposal process .
VAN NOSTRAND : Solar panels often contain lead , cadmium and other toxic chemicals that cannot be removed without breaking apart the entire panel . Solar panel disposal in regular landfills is thus not recommended in case modules break and toxic materials leach into the soil . Although about 90 % of most photo voltaic ( PV ) modules are made up of glass , this glass often cannot be recycled as float glass due to impurities . But the possibility of recycling solar panels in the U . S . has not been extensively explored because a vast majority of installations have occurred in the past 10 years . In Europe , on the other hand , where greater solar PV capacities were installed in the 1990s , a solar PV module recycling market is steadily maturing .
In the case of wind turbines , about 85 % of turbine component materials — such as steel , copper wire , electronics and gearing — can be recycled or reused . The blades are different as they are made up of fiberglass , a composite material , to be lightweight for efficiency yet still durable enough to withstand storms . The mixed nature of the blade material makes separating the plastics from the glass fibers to recycle into a workable fiberglass material difficult , and the strength needed for the blades means they are also physically challenging to break apart . There are few options for recycling the blades currently , so the vast majority of those that reach end of use are either being stored in various places or taken to landfills .
WRIGHTSTONE : According to Mark Mills , a senior fellow at the Manhattan Institute , by 2050 , with current plans , the quantity of worn-out solar panels — much of it non-recyclable — will constitute double the tonnage of all today ’ s global plastic waste , along with over 3 million tons per year of unrecyclable plastics from worn-out wind turbine blades . By 2030 , more than 10 million tons per year of batteries will become garbage .
WRIGHTSTONE : In 2004 , Pennsylvania enacted the Alternative Energy Portfolio Standards that likely made the state less competitive . Alternative energy mandates raise the cost
WWW . WVEXECUTIVE . COM SPRING 2021 67