AUSTIN – Tuesday, the Texas Public Policy Foundation’s Life:Powered campaign published an update to its comprehensive analysis of federal energy subsidies. As more wind and solar generation has been built over the past four years, subsidies for those resources have expanded in proportion, totaling over $140 billion since 2010, with nearly half the total being amassed in the last four years.

While oil and gas, nuclear, and coal have all received significant federal subsidies—$39 billion, $26 billion, and $20 billion since 2010—the subsidies for wind and solar are even larger when compared to how much electricity is produced from those resources. Wind has received 48 times more subsidies per unit of electricity generated than oil and gas, while solar has garnered a staggering 168 times more.

Moreover, the structure of most federal subsidies favors immediate installations over innovative technology. This shortsighted approach fails to invest in the future of energy, such as the development of advanced nuclear and fossil fuel technologies.

After decades of government support, wind and solar continue to represent a small fraction of U.S. energy production—3.5% and 2%, respectively, in 2023. This raises an essential question: if these technologies are truly viable, why do they continue to need such extensive subsidies and why have decades of support and development resulted in such a small market share? With the Inflation Reduction Act expanding these subsidies and effectively making them permanent, the need for reform has never been greater.

“Energy markets should be driven by competition, innovation, and consumer choices, not by government mandates and subsidies,” said Brent Bennett, policy director of Life:Powered and author of the study. “Markets have chosen fossil fuels for their energy density, versatility and affordability, and continued attempts by the federal government to reduce fossil fuel consumption have only made energy less affordable and reliable for Americans. It’s time for a return to common sense energy policies that prioritize markets and energy freedom over the preferences of special interests in Washington, D.C.”

As policymakers grapple with the complexities of energy production and the future of the American energy industry, it is crucial to roll back all energy subsidies, especially the overwhelming subsidies for wind and solar. Without this reform, the U.S. risks compromising its energy independence and economic stability.

Download the full research paper, here.