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by hwillis 241 days ago
Pretty unlikely. Solar is built on cheap land with low demand, and if the land isn't sold then the power is free so why wouldn't you sell it? No matter how high the taxes are, free money is free money. Aside from making it totally illegal it is very hard to reduce the incentive to sell power.

On top of that the subsidies for solar installations are mostly frontloaded, since the costs are frontloaded. Annual tax breaks are transferrable, so they get sold at the beginning of the project to offset investment cost, lowering interest payments. Even removing tax breaks would not make existing installations less profitable.

3 comments

Yes, it would be absolutely irrational and indefensible to block people from building solar farms where there is a straightforward commercial case for doing so. Unfortunately, "irrational and indefensible" is exactly what this administration is: https://www.theguardian.com/us-news/2025/oct/10/trump-offici...
I work in the industry. Removing the tax breaks is having a material impact because we look at after tax cash flow. Next year installations are going to reduce meaningfully.
The articles about Solar cost reaching parity with Fossil. Is that before or after taxes?
Its probably referring to the price at which solar can sell power. In the middle of the day, its actually effectively $0 (no marginal cost). In nighttime, its infinite cost. Fossil fuels marginal cost is effectively the cost of fuel per MWh.
Taxes are far too complex to figure that our. In the case of other there are a lot of different players and most do things other than oil and so it isn't possible to figure out what tax/subsidy is from oil.
Was wondering if anybody just took raw manufacturing/operating costs, and energy output, and compared. Removing all taxes and subsidies from the equation. If we are going to say Solar is now cheaper, I'd think it would have to be without subsidies.
Accounting is a big issue for renewables because almost all the cost is upfront. You pay a capital cost for X years (say, 30) of electricity. Maintenance is a much smaller fraction of the cost. Therefore the question of profitability depends on all sorts of non-power things: amortization, interest rates, how the tax-deductibility of a capital investment is handled, what future electricity costs are, and so on.
How do you suggest fossil fuel subsidies should be positioned in the equation?
Optimally, I'd like to see both calculated with zero subsidies.

Some people also complain about Solar being front loaded. But a power plant is also paid for up front. I'd like to see life time costs, minus subsidies.

You are right it makes sense but that hasn’t stopped them from gutting all sorts of sensible programs both energy-related and otherwise regardless of the stage of investment/development. Have we forgotten about Musk and his mob already?

This administration is openly touting “beautiful clean coal” (doesn’t exist) for powering servers. Renewables are yet another front where people are divided based on politics. It has little to do with efficacy or practicality. I still have family members convinced that offshore wind power is mass-killing whales because of Carlson.

https://www.whitehouse.gov/presidential-actions/2025/04/rein...

> I still have family members convinced that offshore wind power is mass-killing whales because of Carlson

And if they are anything like the people I've talked to, they never once cared about whales (or any sea life) before this. Same with the "wind turbines kills birds" or even "trans women are ruining women's sports". Ahh yes, a whole list of things you've never cared about, made fun of, or derided in the past but now suddenly care about because of some talking head. It's exhausting.

Too true. Until they realized they could use it to bully the trans community the only time they talked about the likes of the WNBA was in service of a punchline for a bad joke.
This exactly. People who I have seen make jokes at the WNBA's expense suddenly caring about the sanctity of the sport... I often wonder if they see the cognitive dissonance, probably not.
College sports should expand into having an Alumni league. Like the WNBA and other W-sports have a suspicious system where the leagues expenses grow very much in line with revenue while player salaries don't.

Colleges already have the facilities to host games so it seems like an easy steal as there's actually a lot of money in (certain) woman's sports (i.e. USMNT and USWNT in soccer have similar revenue but different salaries) but the salaries are low so its an easier target then say the NFL.