Renewable Energy Gets Sustainable Financing
Like many other startup industries, renewable energy receives subsidies to help jumpstart an entirely new business sector. It has initially followed the example of the oil and gas industry, which has received over $470 billion in tax credits since early in the 20th century. Those “depletion tax credits” continue today, amounting to almost $5 billion annually. By contrast, the current, early-stage renewable industry receives about one-half that amount. But even those half-size subsidies have been uncertain and are often under political attack. Now, the renewable energy sector is moving toward financial models as innovative as the technology itself. New investment ideas, such as master limited partnerships and securitizing solar assets are driving down costs while amping up revenue, attracting even more investment. For the details, see RP Siegel’s article. Never has the future of a sustainable, renewably powered energy future seemed so now.
John Howell, Editorial Director