tax credits

Geothermal energy may be safe

August 4, 2025 By EarthWise Leave a Comment

The Trump Administration is outwardly hostile to renewable energy, especially solar and wind power. Federal support for these energy sources that are by far the most rapidly growing energy sources across the globe is being gutted while fossil fuels are being propped up.

There is also renewed enthusiasm for nuclear power and, somewhat surprisingly, geothermal heat. Geothermal is a renewable and clean energy source that has long been mostly overlooked and underfunded. The main reasons are its expense and the fact that its large-scale use is unproven.

Historically, geothermal energy has relied upon naturally occurring features such as hot springs and shallow underground heat sources. However, technological breakthroughs that began in 2013 have led to enhanced geothermal systems, or EGS. EGS makes use of the fact that if you drill deep enough into the earth pretty much anywhere, you will encounter substantial amounts of heat. EGS plants pump water three miles down or more where it encounters rock that reaches over 500 degrees. The piping hot water is then brought to the surface where it spins turbines to generate electricity.

Several companies are developing EGS in the U.S. financed by tech companies seeking power for their AI activities, the Defense Department, and even by fossil fuel companies who use comparable drilling technology for fracking.

The so-called Big Beautiful Bill passed by Congress in July that eliminates tax credits for wind and solar energy preserves tax credits for geothermal projects.

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Why U.S. Geothermal May Advance, Despite Political Headwinds

Photo, posted September 30, 2019, courtesy of Stephen D Strowes via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Storing carbon underground and abandoned wells

April 18, 2024 By EarthWise Leave a Comment

Using government support in the form of subsidies and tax credits, energy companies and others are planning to capture millions of tons of industrial carbon dioxide emissions and pipe the greenhouse gas into underground storage. It is a strategy enthusiastically supported by the fossil fuel industry because it allows them to keep burning the stuff.

There are currently 69 projects being reviewed by federal and state regulators seeking to store CO2 underground. The sorts of places where carbon dioxide can be injected are geologic zones containing porous rock formations which, in no way coincidentally, are the same places where oil and gas deposits are found. As a result, these places are studded with abandoned wells that have accumulated over the past century.

In Louisiana, there are about 120,000 abandoned wells that overlie geological zones that could store carbon dioxide. Environmental watchdog groups have identified numerous abandoned wells within a few miles of proposed storage sites.

The problem is that abandoned wells leak – even ones that have been plugged – and many haven’t been. The question is how much leakage will occur and what will be the consequences of the leakage. In Texas, pumping oilfield wastewater into abandoned wells has led to geysers of toxic water, artificial saline lakes, and earthquakes.

Underground carbon dioxide sequestering on a scale large enough to really matter will have to extend to very large areas. For example, injecting 100 million tons per year could create a pressurized zone as large as 100 miles. How large a problem this might create from abandoned wells in the zone is not at all clear but cannot be ignored.

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Companies Are Poised to Inject Millions of Tons of Carbon Underground. Will It Stay Put?

Photo, posted December 3, 2023, courtesy of Jason Woodhead via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

New York’s first offshore wind farm

December 14, 2023 By EarthWise Leave a Comment

New York has set a target of installing 9 GW of offshore wind capacity by 2035. The first offshore wind farm in the state – South Fork Wind – was approved by the Long Island Power Authority in 2017. Construction began in 2022.

South Fork Wind Farm is a 132 MW project sited 35 miles offshore from Montauk, New York. Early this year, the subsea power export cable was installed by Nexans, a cable and optical fiber company. In June, the project reached its “steel in the water” milestone with the installation of the farm’s first monopile foundation.

In November, the first of South Fork Wind’s 12 Siemens Gamesa wind turbine generators was hoisted into place by the offshore construction team. The turbines are being installed by a specialized vessel called the Aeolus. Turbine installation involves using a crane to place the steel turbine tower onto the foundation. The nacelle and rotor are then installed on top of the tower. Finally, the blades are bolted one by one to the rotor.

All 12 turbines for the project are expected to be installed by the end of this year or by early 2024.

There have been setbacks for the U.S. offshore wind industry in recent times. Two projects in New Jersey have been scrapped because of supply chain issues. Rhode Island Energy pulled out of a project citing higher interest rates, increased expenses, and problems with tax credits.

But despite these setbacks, the industry continues to make headway. Vineyard Wind in Massachusetts is on the precipice of delivering its first power to the grid and the pipeline of additional projects continues to grow.

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First turbine installed at South Fork Wind, New York’s first offshore wind farm

Photo, posted August 7, 2013, courtesy of SSE / Department of Energy and Climate Change via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Explosive Growth Of Electric Vehicles | Earth Wise

May 25, 2023 By EarthWise Leave a Comment

Not long ago, electric cars were a rarity. Ten years ago, annual global sales of EVs were only a few hundred thousand. As of today, globally, still less than one percent of all the cars on the road are electric. But that is changing rapidly.

In fact, electric vehicles are expected to capture nearly 20% of the global market this year. Global sales of EVs were 3 million in 2020 and 6.6 million in 2021. Last year, sales of electric vehicles hit 10 million and are expected to reach 14 million this year according to the International Energy Agency.

Analysts at the IEA have had to repeatedly revise their projections for future EV sales as the numbers keep going up faster than predicted. Last year, they projected that EVs would account for 21% of global sales by 2030. Now, they expect that EVs will reach 35% of sales by that year.

In the US, the EU, and China, policy efforts are in place to boost EV sales. In the US, the Inflation Reduction Act both supports the EV industry and subsidizes consumer purchases with tax credits. As a result of such policies, the IEA expects electric vehicles to account for 60% of sales across these three large markets by 2030.

Part of what is driving the boom in EV sales is that prices continue to come down for the vehicles. When operating and maintenance costs are figured in, the EVs come out considerably cheaper to own. In addition, there are starting to be price wars in the EV industry as competition heats up in the sector.

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EVs to Capture One-Fifth of Global Market This Year Amid ‘Explosive Growth’

Photo, posted May 7, 2022, courtesy of Sharon Hahn Darlin via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Electric Cars Getting Cheaper | Earth Wise

April 12, 2023 By EarthWise Leave a Comment

A sticking point for buying electric cars has always been that they are typically more expensive than equivalent gasoline-powered cars. But increasing competition, government incentives, and falling prices for lithium and other battery materials is changing the equation. In fact, the tipping point when electric cars are as cheap or even cheaper than internal combustion cars is likely to happen this year for many cars and, in fact, has already happened for some.

Battery production is ramping up for Tesla, General Motors, Ford, and others, creating cost savings from mass production. Companies manufacturing batteries in the United States are receiving government subsidies as part of a drive to establish a domestic supply chain and reduce dependence on China. Before anyone cries foul, it should be noted that globally, oil companies received a trillion dollars in subsidies last year. The Inflation Reduction Act is making it cheaper for automakers to build electric cars (provided they do it in the United States using US materials) and cheaper for consumers to buy them because of tax credits.

Multiple companies have lowered the price of their electric vehicles in recent months, including both the Tesla Model 3 and Model Y, which are the best-selling electric cars in the United States. GM’s electric Equinox crossover will start at about $30,000, which is still about $3,400 more than the gas-powered version. But once the electric vehicle tax credit is figured in, it will actually be cheaper.

Electric cars are already cheaper to own and operate because of the much lower cost of powering with electricity instead of gas as well as the greatly reduced maintenance costs for the vehicles. Once the purchase price of these cars is less than that of gas-powered cars, the economics becomes a no-brainer.

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Electric Vehicles Could Match Gasoline Cars on Price This Year

Photo, posted May 11, 2021, courtesy of Chris Yarzab via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Distributed Wind Energy | Earth Wise

March 17, 2023 By EarthWise 1 Comment

When we think about wind power, we are usually talking about increasingly giant windfarms – either on land or offshore – that produce power on a utility scale. But there is also distributed wind energy, which refers to wind technologies in locations that directly support individuals, communities, and businesses.

Distributed wind can be so-called behind-the-meter applications that directly offset retail electricity usage much as rooftop solar installations do. It can also be front-of-the-meter applications where the wind turbines are connected to the electricity distribution system and supplies energy on a community scale. Distributed wind installations can range from a several-hundred-watt little turbine that powers telecommunications equipment to a 10-megawatt community-scale energy facility. As of 2020, there were nearly 90,000 distributed wind turbines in the U.S. with a total capacity of about 1 GW.

A study by the National Renewable Energy Laboratory has estimated the potential for distributed wind energy in the U.S. According to the new analysis, the country has the ability to profitably provide nearly 1,400 GW of distributed wind energy capacity.

Entire regions of the country have abundant potential. The regions with the best economic prospects have a combination of high-quality wind, relatively high electricity rates, and good siting availability. Overall, the Midwest and Heartland regions had the highest potential especially within agricultural land.

Realizing this outcome for distributed wind will require improved financing and performance to lower costs, relaxation of siting requirement to open up more land for wind development, and continued investment tax credits and the use of net metering.

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U.S. has potential for 1,400 GW distributed wind energy, NREL finds

Photo, posted January 3, 2009, courtesy of skyseeker via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Driving Electric Is Cheaper For Almost Everyone | Earth Wise

February 24, 2023 By EarthWise Leave a Comment

A study by University of Michigan researchers found that about 90% of U.S. households would save money on fuel costs by owning an electric car rather than a gas-powered car. So apart from the environmental benefits of electric cars, there are real economic benefits as well.

Both the price of gasoline and the price of electricity vary considerably across the country, so there are differences by location. The study found that 71% of U.S. drivers would see their fuel expenses cut at least in half by driving an electric car.

Drivers in California, Washington, and New York would see the largest fuel savings as well as the biggest emissions reductions from a new electric car. Those states have cleaner electric grids and a bigger gap between the cost of electricity and the cost of gas.

The study, published in the journal Environmental Research Letters, only looked at fuel costs and did not take into account the purchase cost of new cars. Generally speaking, plug-in cars have higher sticker prices than gas-powered cars but multiple studies have shown that over their lifetimes, electric vehicles end up being cheaper to own than comparable gas-powered vehicles because of lower maintenance costs on top of the fuel savings. The price gap between equivalent gas and electric cars continues to narrow in any case as the cost of batteries continues to decline. On top of that, the recent expansion of federal tax credits on electric cars is making the vehicles cost-competitive right at the point of purchase.

Gasoline prices have come down considerably from their peak a year ago, but for almost everyone, it is still much cheaper to drive on electricity.

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Seven in 10 U.S. Drivers Could Halve Their Fuel Costs by Going Electric, Study Finds

Photo, posted April 23, 2022, courtesy of Pedrik via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Electric Vehicle Tax Credits | Earth Wise

February 17, 2023 By EarthWise Leave a Comment

As of January 1, many Americans can qualify for a tax credit of up to $7,500 for buying an electric vehicle. The credit is one of the changes enacted under last year’s Inflation Reduction Act. The purpose is to encourage EV sales and thereby reduce greenhouse gas emissions and air pollution.

There has been a tax credit for EVs for more than a decade, but its provisions made cars from any manufacturer ineligible as soon as that manufacturer had sold more than 200,000 cars. Notably, this eliminated the credit for purchasing cars from Tesla and General Motors. Given that electric cars are now selling in the millions, the 200,000-unit cap on the tax credit essentially made it useless as a real force to grow the industry.

The new tax credit has a somewhat complex set of requirements for determining the applicability and amount of the credit. There are price limits on eligible vehicles depending on vehicle type and there are requirements on where vehicles are manufactured, where batteries are manufactured, and where other components are made. The intent is to encourage American manufacturing of the cars and trucks to the greatest extent. There are also income limitations on buyers who want to take advantage of the credit, but those are quite large. The Department of the Treasury has online detailed information about the requirements for the credit and, of course, EV manufacturers can provide the specifics for their own vehicles.

For their part, automakers are adjusting prices, building domestic manufacturing plants and battery factories, and otherwise trying to position themselves for their customers to take advantage of the credit.

The new law also provides a smaller tax credit for the purchase of used electric vehicles.

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Electric vehicle tax credits explained: What’s new in 2023?

Treasury Releases Additional Information on Clean Vehicle Provisions of Inflation Reduction Act

Photo, posted December 9, 2022, courtesy of Choo Yut Shing via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Electrifying Delivery Vehicles | Earth Wise

October 12, 2022 By EarthWise Leave a Comment

Most of the buzz about electric vehicles relates to passenger cars as the auto industry is making a major transition away from gasoline power. Recently, pickup trucks have started to get some attention as well as Ford’s electric version of the F-150 truck has hit the streets and the long-awaited Tesla Cybertruck will be introduced next year. There hasn’t been as much talk about delivery vehicles, but there should be.

There are about 15 million delivery vehicles in the U.S., and they are a significant contributor to greenhouse gas emissions. The post office alone has a quarter million of them. Such vehicles are especially attractive candidates for electrification. Most travel relatively consistent and short routes, which makes it easier for companies to be able to charge them and keep them charged.

Electrifying delivery vehicles in cities is especially important because the vehicles travel into and through residential neighborhoods, spreading pollution and particulates as they go.

Some provisions of the Inflation Reduction Act provide credits for the purchase of commercial vehicles. Light-duty vans and trucks qualify for a credit of as much as $7,500. Medium- and heavy-duty trucks qualify for credits as high as $40,000. In addition, substantial tax credits are available for the installation of charging equipment.

According to a study by the Rocky Mountain Institute, sixty percent of new truck sales could be electric by 2030. By 2035, the trucking industry could cut its emissions in half.

American companies are already stepping up to the plate. Amazon plans to deploy 100,000 electric delivery vehicles from new automaker Rivian. Walmart, UPS, FedEx, and others have also committed to electrified trucks.

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The Climate Bill Will Electrify More Delivery Vans and Trucks

Photo, posted August 1, 2021, courtesy of Ivan Radic via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

A Law To Tackle Climate Change | Earth Wise

September 8, 2022 By EarthWise Leave a Comment

The Inflation Reduction Act signed into law in mid-August is the most comprehensive U.S. legislation addressing climate change ever enacted. It contains $369 billion in funding for clean energy and electric vehicle tax breaks, domestic manufacturing of batteries and solar panels, and pollution reduction.

The legislation for the most part makes use of carrots rather than sticks to coax American consumers and industry away from reliance on fossil fuels. Rather than establishing more carbon taxes, mandates, and penalties, the law largely makes use of tax credits to provide incentives for the use of clean energy.

The law provides a large mix of tax breaks intended to bring down the costs of solar, wind, batteries, electric cars, heat pumps, and other clean technology. For example, consumers will get a $7,500 credit for purchasing many new electric car models and about $4,000 for buying a used vehicle.

On the stick side of the ledger, oil and gas companies that emit methane above certain threshold levels will incur fees that escalate over time. The law also increases the cost to the oil industry for extracting fossil fuels from public lands.

The act provides $60 billion for overall environmental justice priorities, including $15 billion targeted specifically for low-income and disadvantaged communities. There are many other provisions in the law addressing multiple climate-related issues.

According to three separate analyses by economic modelers, the investments from the Inflation Reduction Act are likely to cut pollution by about 40% below 2005 levels by the year 2030.

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The US finally has a law to tackle climate change

Photo, posted December 15, 2021, courtesy of Mario Duran-Ortiz via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.