Andrew Hillard

By Andrew Hillard

If all goes as planned, July will be the start of a sunny future. Next month, Oregon Public Utilities will offer feed-in tariffs, or subsidies, for solar power. Under House Bill 3039, homeowners will be eligible to receive 55 to 65 cents for solar energy, compared to the usual cost of 10 cents per kilowatt-hour. The pilot project intends to boost jobs and clean technology by subsidizing 2,500 homes over 15 years.

However, legislative forecasts, like weather predictions, are often wrong; and in this instance, the sunshine will be short lived…

The feed-in tariff has been tested in Spain and Germany. The result was, well, economic thunderstorms. Spain is now cutting 30% of solar incentives to prevent a Greek-style meltdown. Every subsidized “green” job cost Spain 2.2 jobs elsewhere in the economy. Germany’s experience is no different. After 19 years of subsidies, solar only accounts for 0.5 percent of Germany’s total electricity.

In Oregon, feed-in tariffs will be funded by electricity ratepayers, increasing power costs and destroying productive jobs. With 11% unemployment, this is not attractive.

Solar feed-in tariffs are neither new nor progressive. They’ve been tested and shown to have unintended, negative consequences. Even if record rains stop in July, this solar plan does not look bright.

Andrew Hillard is a research associate at Cascade Policy Institute, Oregon’s free market public policy research organization.

 

One Response to “Shedding Light on Solar Subsidies”

  1. Tim June 23, 2010 at 11:30 pm #

    Good report. I will definitely keep these things in mind. Thanks again, Andrew.

Leave a Reply

 

Other Publications by

More On These Topics

Portland’s Streetcar Audit: What Went Wrong?

Cascade Policy Institute | December 17, 2014
Last Thursday, auditors released a report questioning the Portland Streetcar’s performance. Ridership counts were inflated by 19%. Several additional metrics, including hourly vehicle operating costs ...  read more

Why Do City Leaders Keep Portland in the “Transportation Dark Ages?”

Steve Buckstein | December 9, 2014
In November, Beaverton, Gresham, Hillsboro, and Tigard joined Vancouver, Washington in welcoming ridesharing juggernaut Uber to operate legally in their cities. Last weekend, Uber began ...  read more

The Governor’s Budget: Much More Than Beer Money

Steve Buckstein | December 3, 2014
Governor John Kitzhaber released his proposed 2015-17 budget this week. Critics were quick to argue that it’s either too much or too little, depending on ...  read more