Tax Policy for Wind Energy to Drive Economy
Published By : 27 Aug 2012 | Published By : QYRESEARCH
The current ongoing year has seen U.S. wind energy industry achieving milestones one by one. The recent achievement was in the current month, when American wind energy reached a total installed capacity of 50 GW (Giga Watts) for electricity generation through wind energy. Prior to this, earlier this year, another milestone was achieved when industry exceeded the benchmark of providing equivalent energy, from the time when first turbines was installed, as would have been generated by burning 42 billion US gallons of oil, or 1 billion barrels of oil.
The capacity of 50 GW is sufficient enough to light 15 million homes on an average basis. The success shown by wind energy industry has not been achieved by any other energy source. Over the last 30 years, industry has shown significant improvements, with fastest growth in recent years. It almost doubled its capacity in the last four years. In 2008, the total installed capacity of wind energy was 25 GW, a five times higher than that in 2003. It took industry almost 23 years to reach a capacity of 5 GWs during the period of 1981 to 2003, since its inception.
The key to success shown by wind energy industry is largely attributed to stable tax policies followed by government. The production tax credits provided by federal policies have been a significant supporting factor for the growth exhibited by the industry. A similar approach of PTC (Production Tax Credit) in near future, if not followed, may however hinder the growth trends.
The wind energy industry not only is contributing to domestic energy requirements, but also providing jobs to thousands of people, at a time when the economy is in critical phase. The major factor in favor of extending PTC for Wind energy industry is that everyone in the house including Congress democrats and republicans, everyone, acknowledges the importance and support provided in driving the growth. The industry has helped in development of rural communities along with providing diversification of energy resources dependence of America, which relies heavily on oil.
The wind energy is thus contributing by securing energy independence of America in the future and helping taxpayers to cut down the rising electricity bills, by providing cheaper alternatives.