The Wall Street Journal

At a time of intense debate over the federal budget, government subsidies for wind and solar power are more contentious than ever. The question of whether those subsidies are justified has taken on fresh urgency with the looming expiration of a major wind subsidy.

The federal tax credit for wind-power producers will expire at the end of this year unless Congress extends it. There is widespread agreement that pulling the plug on the subsidy at this point could hobble the wind-power industry. Meanwhile, the biggest federal subsidy for solar power, a tax credit for 30% of the cost of installed equipment, is set to drop to 10% at the end of 2016. A cash grant for up to 30% of solar equipment costs expired at the end of last year.