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Energy secretary calls wind and solar tax credits "the most destructive subsidies" and says they can raise electricity costs
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Summary
Secretary Chris Wright criticized federal production tax credits for wind and solar, arguing the credits distort markets by paying producers per kilowatt‑hour and can make electricity more expensive while undermining baseload generators.
In the interview, Secretary Chris Wright offered a pointed critique of federal tax credits for wind and solar generation, which he said are scheduled to lapse for many projects on July 4.
"They are the most destructive subsidies I have seen in my life," Wright said. He described a production tax credit that pays roughly 4¢ per kilowatt‑hour and argued that when intermittent generation bids into markets — sometimes at negative prices because of the credit — it can suppress revenues for baseload plants and ‘‘crush the economics'' of nuclear and coal.
Wright offered an economic explanation: when wind produces during low‑demand periods it displaces a small amount of natural‑gas burn and reduces marginal operating cost by a few cents, yet receives a production tax credit that can exceed that savings. He said that mismatch can encourage bidding behavior that distorts wholesale market prices and investment decisions for reliable capacity.
The interview did not include a detailed empirical analysis, modeling, or third‑party data; Wright framed his view from the perspective of a long‑time businessman and recent government official. He also reiterated broader policy goals of lowering consumer energy bills and ensuring reliable supply while encouraging investment where it makes economic sense.
