Federal subsidies for renewable energy have increased significantly over the last decade and are projected to continue rising through 2029. A report by the Energy Alliance reveals that this federal support is accelerating the shift from fossil fuels to renewables.

According to the report, titled "U.S. Federal Renewable Energy Subsidies are Driving the Energy Transition," renewable advocates often exaggerate the total amount of fossil fuel subsidies. It asserts that these claims are not only inaccurate but also may be an attempt to distract from the large sums in renewable energy subsidies that are propelling the shift from fossil fuels to renewables.

The report indicates that from 2010 to 2019, renewable energy subsidies were nearly twice those for fossil fuels, $74.1 billion versus $37.9 billion. From 2020 through 2029, renewable subsidies will rise to $244.9 billion, a stark contrast to $22.5 billion for fossil fuels. Fossil fuel subsidies have dropped by 40%, while renewable subsidies have soared by 230%. The Inflation Reduction Act has contributed to this significant increase.

"The subsidies are the only reason that wind and solar generation exist in the U.S. on a commercial scale and are the primary reason that the U.S. grid is experiencing increasingly unsustainable levels of unreliability," states the report. "The subsidies also represent a takeover of the U.S. electric grid by the federal government, following in the footsteps of takeovers of Wall Street, health care, and education."

The report further argues that this transition distorts the energy market, undermining the reliability of the U.S. electric grid as a result and causing electricity prices to rise. California and Texas have experienced significant rate increases. The report suggests lawmakers should eliminate all energy subsidies to allow market forces to determine the energy mix.