01 Oct Bad Bargain: How Renewable Energy Mandates Pick your Pocket
Policy Brief No. 2013-3 * 2013-10-01 16:09:42
By Kelly Sloan
Abstract: Editor: The fading fad for state Renewable Portfolio Standards (RPS) has accomplished little but the transfer of vast sums of money from consumers to favored industries. Average electric rates in the 30 states with enforceable mandates for wind and solar are 21% higher than in the states without such mandates. Higher unemployment in a state appears to be correlated with higher electric rates, which in turn are often correlated with enforceable mandates. Between 2003 and 2012, residential electric rates rose nationally by 36%, half again as fast as the inflation rate at 24.8%, hurting poor people the most. Despite all the mandates, subsidies, tax breaks, and loan guarantees, wind and solar accounted for barely 4% of total U.S. electrical generation in 2012. Electricity generated by wind and solar will always cost more because of intermittent availability, geographic limitations, and impracticality of storage.