Why is wind energy subsidized in the United States of America? What happens is that when using electricity from your local energy company they are effectively charging you per KWh. However, those same companies are billed at market value by the actual energy producers. This is can be compared to when your supermarket pays a local farmer for produce.
The total cost of electricity is calculated by combining the construction costs and the operation costs of any facility. When it comes to wind energy the construction costs tend to be way higher than the actual operational costs. As a result, the total cost of wind energy is higher than the calculated market value. This difference price is then covered by subsidies.
By providing subsidies, the government is allowing the industry the time to gain experience and innovate. The ultimate goal is to decrease the construction costs of wind farms so that subsidies are no longer required. As a result the limitless wind energy will now be available cheaper. Another benefit of wind energy is that it helps reduce the emission of green house gases and therefore is environmentally friendly.
You can watch the video below on Why is wind energy subsidized? – IN 60 SECONDS….