Articles filed under Taxes & Subsidies
The wind power tax credit is currently worth 1.5 cents for every kilowatt-hour of electricity produced. The credit’s value began dropping in 2017 and was scheduled to be phased out completely next year. The extension will benefit developers of mainly land-based wind projects, but offshore wind proponents expressed frustration that there was no specific provision for their nascent industry.
The most recent figures available, from a 2017 study by Flatland, a Kansas City-based public broadcasting system, show payments to counties range from $1,000 to $6,500 per megawatt produced. Marion County’s agreements place it near the bottom for payments for wind farms in the state.
Because so much wind power is already on the grid, the growth of other resources, such as solar and storage, is inevitable, King said. “If you keep installing more wind power, but what you need is power capacity for the middle of the day in the summer, then installing another wind turbine becomes too defeating and not helping,” he said.
A cutting-edge wind farm paired with battery storage cannot advance under what developers are calling unworkable terms set by Montana’s Public Service Commission. The PSC put the overall avoided cost of the energy at $6 a megawatt hour effectively killing the project, according Caithness.
WASHINGTON - More than 25 years after Congress created tax credits to encourage the development of renewable energy, wind turbines and solar panels will soon have to fend for themselves as they never have before.
The House passed a tax extenders package this week that includes a one-year extension of the production tax credit (PTC) for wind but failed to move forward an investment tax credit (ITC) provision for offshore wind power.
After millions of dollars were spent developing the project, the suit claims, the county revoked the project’s property tax incentives, adopted rules making a building permit impossible and then rushed to pass a zoning ordinance when the company threatened to sue. The county disputes Sugar Creek Wind’s complaints and said it would “vigorously defend” the suit.
While he welcomed the House’s inclusion of a multiyear phaseout of a biodiesel blenders credit that is a top personal priority as “good news,” Grassley pointedly questioned the extension of key wind and solar breaks that Congress enacted in 2015 on the condition they be phased down. “Both were considered a mature industry that could get by without a tax credit,” he recalled of the 2015 negotiations that led to the phaseout of the wind production tax credit and investment tax credit most commonly associated with solar. “I’m not sure why they’re extending that when the industry agreed to that.”
Expedition’s proposed of er pays twice the rate paid to Marion by Diamond Vista A draft of the proposed agreement between Marion County and developers of a proposed wind farm shows the company is offering twice the per-megawatt rate the county is paid by Diamond Vista wind farm in the northern portion of the county. The proposed rate is $1,800 per megawatt over the first 10 years the wind farm operates.
Offshore wind power is the most expensive alternative-energy source, and Cuomo has boosted these projects’ costs by requiring union labor. To hide the bad news, NYSERDA has to play games. Maybe that’s why, as the Empire Center also reports, its officials have the highest average pay of any state authority.
“Since the business case is being impacted by external delays, we are requesting an extension from the IRS for the originally planned ITCs of the project,” Torgerson told analysts. “We’re petitioning the IRS to get an extension of that ITC at the 24 percent level…through the 2022 timeframe.” The delay means Vineyard may be able to upgrade to longer rotor blades for its 9.5-megawatt MHI Vestas turbines, Torgerson said — jumping from a 164-meter rotor diameter up to 174 meters. Longer blades mean more electricity can be generated.
That particular program ended in 2016, but investors who had projects in progress could keep taking the credits until they had used them up. Some people involved in solar projects created partnerships not only with energy companies but also with banks, insurance companies and other institutions that essentially bought the tax credits. Then last fall, the Revenue Department said it wasn’t going to allow the tax credits in some of those partnership deals that had been used to pay for solar energy projects.
Last week the lobbying arm of the wind energy industry made an unsurprising, though somewhat embarrassing, announcement. It wants a longer lifeline with federal subsidies. So much for wind being the low-cost energy source of the future.
To determine how PPA offer prices have shifted from Q2 2019, LevelTen analyzed data on approximately 600 price offers from more than 360 renewable energy projects across the U.S. In Q3, PPA offer prices rose overall, quarter to quarter.
Less than a year after the U.S. wind industry swore off federal tax credits, its top lobbyist wants another go at the incentive that helped it become the cheapest source of new energy in much of the world.
Onshore wind continues to be held back by the insistence of chancellor Angela Merkel's CDU party on fixing the minimum distance between wind turbines and residential housing at 1,000 metres. This move will "massively cut back the area available for wind energy", said the BEE. "It will throw regional and federal state planning [for wind energy] into chaos and endanger the whole wind sector," said Hermann Albers, president of BWE, the federal wind energy association.
The Board of Supervisors has voted to opt out of state tax exemptions for solar, wind, and farm waste energy systems. The board on Sept. 9 voted to approve a local law allowing Fulton County to “capture tax revenues” from the development of solar energy facilities and to ensure such facilities are “treated equally” with other commercial properties.
The South Dakota Board of Economic Development stepped off its normal path Tuesday. A majority of board members voted against a reinvestment payment that owners of Triple H Wind Farm had sought for the Hyde County project.
Both Fulton and Montgomery counties had shifted away from the full tax exemption offered by New York state in favor of Payment in Lieu of Taxes agreements in recent years. While PILOTS gradually phase-in full taxation of the land over a 15-year period, both counties have now abandoned that method of taxing renewable energy projects in favor of full-taxation.
In addition to being inefficient and hitting hard on electricity consumers, it cannot be ruled out that the electricity certificate system has contributed to knocking out other fossil-free electricity generation, namely a number of nuclear power reactors, which damages the electricity supply. This subsidy is only a free lunch for some shareholders and should be abolished, says chief economist Jacob Lundberg to DI.