U.S. renewable energy subsidies fall 56% in 3 years

The U.
S.
Energy Information Administration reported that U.
S.
subsidies for renewable energy, including transportation and generation, have fallen 56 percent
from $15.
26 billion in fiscal 2013 to $6.
68 billion in fiscal 2016.

Renewables accounted for 45 percent of total federal energy subsidies in fiscal year 2016, down from 52 percent
in 2013.

The decline in subsidies was due to a significant reduction in subsidies for renewable energy generation, from $13.
4 billion to $3.
9 billion
.
However, subsidies for biofuels for transport increased from $1.
9 billion to $2.
8 billion
.

Federal subsidies for energy include tax expenditures, direct expenditures, research and development, and credit subsidies to recipients of federal loan guarantees
.
The first category accounted for 80% of renewable energy subsidies in 2016, or about $5.
6 billion.

Biofuels accounted for 51 percent, followed closely by the Production Tax Credit (PTC) and the Investment Tax Credit (ITC)
for large wind and solar parks.

According to EIA calculations, the fees for PTC and ITC in fiscal 2016 were $1.
4 billion and $1.
2 billion
, respectively.

Direct spending on renewable energy fell from nearly $8.
72 billion in 2013 to about $909 million
in 2016 due to declining support from the American Recovery and Reinvestment Act of 2009 (ARRA).
Federal spending on renewable energy research and development has almost halved from $864 million to $456 million, while federal credit guarantee subsidies have been zero
in those years.