Comparative Study of Government Subsidization of U.S. Electrical Energy Sources

Perception that U.S. government energy subsidies have favored nuclear energy at expense of renewables (hydroelectric, wind, solar, geothermal) is not supported by facts. Largest beneficiaries between 1950 and 2006 from federal energy subsidies have been oil and gas receiving more than half of all federal incentives. Primary subsidy for nuclear energy has been R&D. Evaluating the actual electrical energy produced resulting from government subsidy support shows that wind and solar have cost taxpayers 355mils/kWh, coal 1.53 mils/kWh, nuclear 3.8 mils/kWh and hydro at 5.88 mils/kWh. Average cost of U.S. electrical energy in 2006 was 91 mils/kWh so renewables were subsidized at four times the average cost of electricity. Subsidy for Solar Photovoltaic to produce 0.01% of U.S. electricity as of 2006 was $4.43/kWh.