04/19/2017

Thanks For Giving Me Your Tax Money

Robert Bryce, Wall Street Journal

Now that tax day has passed, I must thank you, my fellow federal taxpayers. You all are the wind beneath my solar panels.

Pardon me for mixing energy metaphors, but it’s only appropriate that I express appreciation for the generous subsidy you provided for the 28-panel, four-array, 8,540-watt photovoltaic system I installed on my metal roof last year. Thanks to the investment tax credit, I slashed my 2016 federal tax bill by $7,758.

Before going further, let me be clear: I’m opposed to all energy subsidies—unless, of course, I’m the one collecting them. And thanks to the incentives for rooftop solar, I’ve snared three subsidies.

In addition to the federal subsidy, Austin Energy (our city-owned utility) paid $6,593 of the cost of my system. Thus, after subtracting local and federal subsidies, the net cost of my 8.54-kilowatt system was $18,100, or about $2.12 per watt of installed capacity. I’m also getting an ongoing subsidy that pays me far more for the electricity I produce than what other generators get in the Texas wholesale market.

My panels are producing about 12 megawatt-hours of electricity per year. In 2016, according to the Electric Reliability Council of Texas, the average wholesale price of electricity was $24.62 per megawatt-hour. But Austin Energy pays me $106 for each megawatt-hour my system produces. Therefore, I’m getting more than four times as much for my solar electricity as other generators in Texas. I get that price regardless of whether the grid needs the juice from my panels or not.

[Subscription required.]

Read full article



You May Also Like:

For More go to the Home Page >>>

Search

SIGN OUR PETITION

FreeMarket Central

TELL CONGRESS: STOP THE POLITICS.

PASS A HEALTH CARE BILL THAT PUTS PATIENTS FIRST



Americans need a health care bill that serves needs of individuals—not those of Washington and big corporations.

 

Read more

Bookshelf

FreeMarket Central

Some titles recent, all recommended -

Special Video Feature

FreeMarket Central

Voices From The 2017 International Students For Liberty Conference

In Search Of History

When America Was Truly The Land Of Opportunity

For [early immigrants] America was truly the land of opportunity. For the first time in their lives, many were truly free to pursue their own objectives. That freedom released the human energies which created the United States. There were few government programs to turn to and nobody expected them. But also there were few rules and regulations. There were no licenses, no permits, no red tape to restrict them. They found, in fact, a free market, and most of them thrived on it. 

-- Milton Friedman,

Shadow Stats Snapshot


FreeMarket Central

ShadowStats alternate economic indicators are based on the methodology of noted economist John Williams, specialist in government economic reporting.

  • Unemployment:
    FreeMarket Central BLS: 4.4%
    FreeMarket Central Shadow Stats: 22.1%
  • Inflation:
    FreeMarket Central June Year-to-Year: 1.87% (CPI-U*)
    FreeMarket Central Shadow Stats: 9.6%

*[cpi-u is the Bureau of Labor Statistics inflation rate for all urban consumers]