Solar’s tough week
Solar stocks have had a tough week. The US Senate proposed a major reversal of clean energy tax credits — cutting them off by 2028 instead of the previously planned 2032. Some solar shares fell by as much as 40%.
Thankfully, the Montanaro Better World Fund has no direct exposure to solar panel manufacturers. But the news raised a bigger question: what’s going on in the US? Why would the government undermine its own clean energy progress — just as the world (and the US itself) needs all the power it can lay its hands on?
Predictably, the usual refrain followed: “if solar and wind are so great, why do they need subsidies?”
So I did some digging.
And in a Montanaro first, listen to an AI Podcast discussing our blog.
Sources:
Hannah Ritchie: https://ourworldindata.org/how-much-subsidies-fossil-fuels
Why the world cannot quit coal: Financial Times: https://www.ft.com/content/f6cc8bbc-9e45-4062-b216-37875b75d3cc