Government subsidies help power progress in renewable energy
Renewable energy in the U.S., as in other parts of the world, is heavily reliant on subsidies provided by the federal government. These subsidies help power progress in the renewable energy sector and support myriad projects that would not exist without adequate financial assistance. While subsidies have helped with progress, the fact that they are often tied to the government has been something of an issue in recent years. Because government subsidies are subjected to a great deal of bureaucracy, the financial aid provided to renewable energy projects can often be lacking or slow to arrive. Fortunately, renewable energy in the U.S. may not have to rely on such subsidies forever.
Study suggests the need for subsidies could end by 2025
The National Renewable Energy Laboratory has released a new study that suggests that some forms of clean power will no longer rely on government subsidies by 2025. Solar and wind energy are noted specifically in the study as having potential to reach this goal. The study claims that this goal can be achieved with the help of new renewable energy projects taking root in highly productive areas. For solar energy, this would mean projects should take form in states like Nevada and Arizona and for wind energy, the ocean holds a great deal of potential.
State and federal regulations help promote renewable energy
The study notes that renewable energy development has largely been associated with state and federal mandates. The federal government is working to curb emissions throughout the country and has instituted regulations concerning reduction efforts and the emissions produced by businesses. Several states have their own such regulations that work alongside those imposed by the federal government. In order to comply with federal regulations, states have been funneling money into renewable energy projects and in order for businesses to comply with state regulations, they have been adopting clean power systems more aggressively.
Private investors could help put an end to subsidies
Government subsidies could be phased out relatively quickly if investments from the private sector increase significantly in the coming years. Private investors have been showing a great deal of interest in renewable energy, but many also hold concerns regarding the viability of clean power and whether or not it will ever be able to replace fossil-fuels.