Fact: Solar wins, without subsidies. (With subsidies, it wins faster.)

Calhoun CC

Myth: Solar won’t work without big subsidies

The Fallacy Explained:

Solar is winning, despite the overwhelming amount of subsidies fossil fuels continue to suck from the economy. The Guardian summarizes an International Monetary Fund (IMF) report showing that “fossil fuel companies are benefitting from global subsidies of $5.3 trillion a year, equivalent to $10 million a minute every day. The IMF calls the revelation ‘shocking’ and says the figure is an ‘extremely robust’ estimate of the true cost of fossil fuels. The $5.3tn subsidy estimated for 2015 is greater than the total health spending of all the world’s governments.”

But even as the minimal subsidies for solar are being phased out in the U.S., solar David is winning the battle against fossil fuel Goliath: According to popular investment forum The Motley Fool, “For the first half of 2014, solar accounted for just over half (53%) of all new generation capacity…. America’s total solar assets now sit at more than 15,000 MW.” Furthermore, “According to the SEIA, the U.S. installed more than 100 MW of residential solar without any state incentives.”

Solar wins, with or without subsidies. (With subsidies, it wins faster.) “If we get the pricing of fossil fuels right, the argument for subsidies for renewable energy will disappear. Renewable energy would all of a sudden become a much more attractive option.” ~David Coady, IMF

Digging Deeper: