Our Cup of

Tea
The United States Government Must Change
their Renewable Energy Policy and be Open
to Funding Sustainable Sources
Amanda Craine

April 2016

The world has been transferring fossil fuels into energy since the Industrial Revolution, so it
is no secret that environmentalists claim we will run out of our main energy source by 2088
(1). One of the worlds biggest issues is finding a secure fuel source that will allow us to
continue living comfortably, and some countries already have a head start on these policies.
In 2014, global clean energy investment rose 16%, the first growth since 2011 (2). Denmark
currently holds the world record for wind production, obtaining 39.1 percent of its electricity
from wind power (3). In 2015, onshore wind (wind turbines on land rather than at sea) was
also deemed the cheapest form of energy in Denmark (3). Due to these successful
improvements overseas, the United States should make an effort to follow in their footsteps.
Since the United States has expressed concern for the future of the countrys primary energy
resource, the United States government should mandate policies to further promote
alternative energy sources that are both sustainable and cost effective.

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Why a Policy Has Not Been Implemented Yet

The United States has been lagging behind in solar power and wind power, especially behind
European countries. Germany is the worlds top photovoltaic installer, and has set goals to
obtain 35 percent of its total electricity from solar power by 2020, and 50 percent by 2050
(4).

In Portugal, 70 percent of their total energy consumption in the first quarter of 2013 was
fueled by renewable energy sources (4). Some may say that it is easy for these European
countries to quickly switch to sustainable resources because they are wealthy nations that can
afford to make significant investments in renewable energy. What about the third world
countries who cant afford to allocate their investments to renewable sources? In India, there
are solar power stations available in some of the worst slums and neighborhoods for poor
families to gain access to electricity (4). While most of Indias population owns cell phones,
the lack of electricity in rural areas prevents them from powering their electronics. And thus,
Pollinate Energy was born. Pollinate energy is an Indian non-government organization that
provides slum communities with the most affordable solar systems to bring electricity to their

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homes (4). Compared to the amount of rupees spent on kerosene every week to light their
homes, the leaders of Pollinate Energy claim that these solar systems pay for themselves
within six months, which is an essential component for people who make about 3 to 4 dollars
a day (4). If both first-world and third-world countries are making the switch renewable energy,
what is the worlds wealthiest nation waiting for?
There are a few issues to consider that have made it difficult for the United States to fully
commit to sustainable energy.

The power of American utility companies prevents solar power popularity.

The American Separation of Powers makes it difficult to agree upon a policy

adjustment.

Free market ideology suggests that issues like renewable energy policy will work
themselves out and do not need government interference.

The biggest threat American utility faces is self-sufficient buildings, and solar power makes
that nightmare a reality. From the perspective of a utility company, every unit of rooftop solar
power consumed decreases the demand for their product, so they fear that their services will
no longer be needed altogether (4). In 2013, the Edison Electric Institute, a trade and lobbying
group for U.S. investor owned utility companies, released a report where they openly
expressed their concerns regarding the increasing popularity of renewable energy:
"While we would expect customers to remain on the grid until a fully viable and economic distributed
non-variable resource is available, one can imagine a day when battery storage technology or micro
turbines could allow customers to be electric grid independent. To put this into perspective, who would
have believed 10 years ago that traditional wire line telephone customers could economically 'cut the
cord (4)?'"

On top of utility companies fearing their own extinction, their investors are terrified of losing
their money. Therefore, they will do everything in their power to ensure that they maintain
their flow of dividends, which increases the power of utilities in the United States.
According to Yale Law Schools E. Donald Elliot, another major component of Americas
hesitation to switch to sustainable energy sources is the structure of the government. Unlike
the parliamentary systems implemented in Europe that contain executive and legislative
branches in the same party, the U.S. government has different parties controlling different

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sections of the government (5). In the past, this divided government has made it extremely
difficult for the government to implement one policy that both parties fully support. Also, the
United States government strongly supports the free market ideology, and right-wing
administrations claim that we should leave energy choices to the free market (5). Elliot claims,
Its not so much that they [American think tanks] are opposed to renewable energy per se,
but rather to the heavy hand of government to mandate it (5). Unfortunately, the laissezfaire mentality also promotes private ownership; this supports the investors who own utility
companies, which strengthens the force against policy changes in our current renewable
energy structure.

Why Now?
Drury Bacon, Allwest Energy chemical engineer, claims the United States will run out
of domestic oil reserves in three years if oil consumption remains constant. While this number
is mere opinion, fossil fuel depletion is a major issue we face and almost all studies claim that
fossil fuel doomsday will come within the next 100 years. U.S. oil production reached peak
levels in the 1970s, said Bacon. Most of the oil left in the ground is not liquid, but instead
in shale or tar form. Converting that oil into a usable product is expensive and requires a lot
of energy and leaves irreparable scars on the environment (6). Bacon also describes U.S. oil
production as a bell curve, and we are now on the waning end of that curve (5). The United
States currently uses 8 billion barrels of oil a day and the world uses about 31 billion barrels
a year, so world oil supply will last about 40 years with a constant rate (6). However, the U.S.
demand for oil is expected to increase 11 percent in the next ten years, while Chinas demand
is expected to increase 80 percent, and India 96 percent (6). Therefore, this is the opportune
moment to begin to rely on renewable energy as our primary energy source. Bacon also
emphasizes the use of wind and solar power as our main energy sources in the future because
they are both abundant and the technology already exists to produce both forms of energy
for mass consumption (6). Government funding will be necessary to make nation-wide
changes to energy production. The federal government already funds the biofuel industry;
one acre of corn makes produces enough oil to power a car for 5,600 miles (6). However, a
one acre field of solar panels can power a car for 800,000 miles, lasts for 25 years, and can

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be completely recycled at the end of its cycle (6). Therefore, it makes much more sense for
the government to provide more subsidies to solar panel companies for energy production
rather than farms.

Economics of Switching to Solar and Wind Power

Initially, solar power was seen
as a luxury, not a necessity. Increased
competition

between

solar

power

industries has caused the price of solar

panels to drop drastically. In the early
2000s, the average U.S. solar system
cost $10 per watt (8). In 2013, the price
decreased to $4 per watt (8). This price
drop has increased the demand for

Richard, Michael Graham. This striking chart shows why solar power

solar system installation (9). Along

will take over the world. Narrative Content Group. April 15, 2015.

with the support of countries stricken with pollution, solar power has gained a lot of attention
from big businesses (8). Walmart, Verizon, and Apple are using solar energy to power their
stores and offices (8). While solar power still only accounts
for 0.4% of energy consumption in the U.S., big business
recognition is helping solar power slowly gain popularity
within residential and commercial sectors (10). Due to
recent price declines, the price per kilowatt hour in Europe
is expected to reduce to from 6 cents to 4 cents by 2025
and potentially 2 cents by 2050 (8). Based off of these and
other economic expectations, solar photovoltaic (PV)
panels will be one of the cheapest sources of energy in
DuHamel, Jonathan. Renewable energy causes electricity
cost to skyrocket. Wordpress.com. August 6, 2015.
Note: Renewable energy only makes up 10 percent of
U.S. total energy consumption, i.e. solar power makes up
0.4% of total U.S. energy consumption.

coming years. Global consumption is also expected to

increase with declining prices: current estimates suggest
that solar power will fuel 5 percent of global electricity

consumption by 2030, and 16 percent by 2050 (8). If this goal is reached, the global capacity

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of solar energy would increase from 2014s 150 gigawatt cap to 4600 gigawatts by 2050 (8).
This increase in solar power would reduce carbon dioxide emissions by 4 gigatons annually
(8).
Like solar power, the cost of wind energy is declining quickly and large companies
like Google, IKEA, and Microsoft have been investing in wind to add value to their business
(13). According to the Wind Energy foundation, the price of American wind power has
decreased 90 percent since 1980 (11). In 2011 and 2012, the price of wind energy under longterm power projects in the United States averaged about 4 cents per kilowatt-hour, which was
a 50% drop since 2009 (11). This cost is determined by the time, frequency, and strength at
which the wind blows (11). High-speed winds can be caught easier and quicker than lowspeed winds, which makes high-speed wind capture much less expensive than low-speed
winds (11). The power produced by a wind turbine is a function of the cube of the average
wind speed (11). Therefore, if the wind speed doubles, then the wind power is eight times as
great as it was before (11). One concern people have with wind energy is that it is not reliable;
when the wind doesnt blow, power is not produced (12). According to Anders Runevad, the
CEO of the renewable energy company Vestas, newer wind turbines are better at capturing
wind power at any speed due to bigger rotors, higher towers, and lighter blades (12). Another
issue to consider when capturing wind energy is the distance between turbines and
transmission lines (11). Some remote areas are ideal for wind capture due to high-speed
winds, but some are too far from major urban areas in order for the energy to be used
optimally. Another attribute unique to wind energy is the ability for off-shore projects. The
open space and efficiency of boat transportation allows off-shore turbines to be much larger
than on-shore turbines (11). Therefore, they can withstand much stronger winds and can
produce much more energy than on-shore turbines. However, similar to on-shore projects,
the efficiency of energy production depends on the distance between turbines and the shore
(11). As for the future of wind energy, lack of greenhouse gas emissions and extremely low
cost make wind energy the most appealing alternative fuel source to date. Mr. Runevad
expects the cost of wind energy to continue to decrease for three reasons.

Turbines are becoming larger, with taller towers, and lighter materials (12).

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Increased efficiency in both the supply chain and manufacturing systems allow
the cost to decrease (12).

As the amount of wind installations increase, demand for wind energy will
increase, and the cost will continue to drop (12).

Overall, the outlook for wind energy is similar to solar power: prices are expected to drop, big
businesses are beginning in invest in both forms of alternative energy, and the United States
has both the financial means and public support to begin the switch to renewable energy
sources.
The U.S. government has already created incentives for individuals to switch to
renewable energy sources. The U.S. Renewable Energy Tax Credit decreases the tax liability of
solar energy users, increasing the incentive for people to switch to solar power (8). A taxpayer
that uses solar energy can receive a credit 30 percent of qualified expenditures for the solar
systems they use, which basically means that solar power users get paid to use solar energy
(8). The U.S. government provides the same credit to wind and geothermal systems as well
(8). In Europe, many countries execute a Feed-In-Tariff to make the switch to renewable
energy more appealing to the public (8). Under this system, people to use renewable energy
systems can collect money from the government (8). These costs are based on per kilowatthour system in order to motivate people to rely more heavily on renewable energy systems
(8).

Optimizing U.S. Land

In order for the United States to optimize renewable energy investments, renewable
energy companies must choose the best location to install either PV solar panels or wind
turbines. Researchers from Carnegie Mellon University determined the best regions of the
United States to produce both types of power by accounting for factors other than the
sunniest or the windiest places. Since one of the main reasons nations are switching to
renewable energy is to reduce the production of greenhouse gases, the researchers focused
on the long-term effects of solar and wind production (14). In regards to solar panels, the
researcher suggest:

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Although the Southwest has the greatest solar resource, a solar panel in New Jersey displaces significantly more
sulfur dioxide, nitrogen oxides, and particulate matter than a panel in Arizona, resulting in 15 times more health
and environmental benefits (14).

Siler-Evans, Kyle, et. al. Regional variations in the health, environmental, and climate benefits of wind and solar generation.
Proceedings of the National Academy of Science of the United States of America. December 19, 2012.

The left image describes the amount of solar power that PV panels in each region of the
United States produce. Clearly, the southwestern states like New Mexico, Arizona, and
especially southern California produce the most amount of solar power. However, it would be
more beneficial for the United States to consider preventing greenhouse gas emissions as
well. The middle image shows that the central states like Kansas and Nebraska avoid the
greatest amount of carbon dioxide, while the Midwest and Mid-Atlantic States have the
greatest amount of health and environmental benefits, as seen in the right image. While the
PV panels in the Midwest and Mid-Atlantic States do not produce as much solar power as the
southwest, it would be more beneficial for the United States to fund solar systems in the east
for the long-term environmental benefits. Cutting back on greenhouse gas emissions allows
solar power companies to save money on energy lost through carbon dioxide and particulate
matter. This money saved can therefore be used to pay for more panels and produce energy
equivalent to the southwestern states.

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The Wind Energy Foundation has also debunked these assumptions as well. One would
assume that the windiest areas (such as North Dakota and Montana) would produce the most
power, but Midwest states like Indiana and Illinois have better transmission capacity than the
windiest areas, so more wind energy can be transported from the turbine to large electricity
demand centers (11). Temperature and air density also contribute to power intensity: cold
winter winds in Minnesota have greater air density, and therefore produce more power
compared to southern Californias light, warm winds of the same speed (11). For the most
part, the areas that produce the most amount of wind energy also prevent the greatest
amount of carbon dioxide.

Siler-Evans, Kyle, et. al. Regional variations in the health, environmental, and climate benefits of wind and solar generation.
Proceedings of the National Academy of Science of the United States of America. December 19, 2012.

While states like Kansas, Nebraska, and South Dakota are obvious wind energy hotspots and
carbon dioxide displacers, the best states to place wind turbines would be Ohio, Indiana
Illinois, and West Virginia. These states consistently have excellent wind capacity and carbon
dioxide displacement, while also having the best health and environmental benefits in the
country. By hitting the green energy trifecta, wind turbine plants in these states can not only
create a significant drop in greenhouse gas emissions, but can also optimize wind power
production better than any other region.

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Concluding Thoughts
This is the opportune moment to make the switch from fossil fuel dependence to
renewable energy use. Multiple studies have shown that the switch will have both shortterm and long-term benefits within the U.S. economy and global environmental health.
However, in order to acquire these benefits, both the U.S. government must come together
on this issue by keeping the well-being of the United States in mind, rather than personal
agendas. It is time for the American people, especially the people in government, to
recognize that independence from fossil fuels is not at all out of our reach. Based off of
systems implemented in Europe and India, in addition to the materials we already have in
the United States, we can gravitate towards renewable energy sources (and away from fossil
fuels) without cutting back on our current energy use. The United States is on the brink of
this switch; but complete change cannot be achieved without support from both political
parties.

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Endnotes
1. The end of fossil fuels. Electrocity Group Limited. https://www.ecotricity.co.uk/ourgreen-energy/energy-independence/the-end-of-fossil-fuels
2. Downing, Louise. Clean energy investment jumps 16%, shaking off oils drop.
January 9, 2015.
http://www.bloomberg.com/news/articles/2015-01-09/clean-energy-investmentjumps-16-on-china-s-support-for-solar
3. Smith, Tierney. 5 countries leading the way toward 100% renewable energy.
Ecowatch. January 9, 2015.
http://ecowatch.com/2015/01/09/countries-leading-way-renewable-energy/
4. Global warming: Why arent we using more alternative energy? April 13, 2015.
http://www.truth-out.org/opinion/item/15754-global-warming-why-arent-we-usingmore-alternative-energy
5. Elliot, E. Donald. Why the United States does not have a renewable energy policy.
Enviromental Law Institute. 2013.
https://www.cov.com/~/media/files/corporate/publications/2013/02/why_the_united_st
ates_does_not_have_a_renewable_energy_policy.pdf
6. Singh, Vinti. U.S. must switch to renewable energy fast, expert sats at WestConn.
News Times. November 19, 2010.
http://www.newstimes.com/news/article/U-S-must-switch-to-renewable-energy-faster822356.php
7. Climate clippings 74. Climate Plus. May 20, 2013.
http://www.climateplus.info/2013/05/20/climate-clippings-74/
8. Nath, Trevir. The economics of solar power. Investopedia. 2016.
http://www.investopedia.com/articles/investing/061115/economics-solar-power.asp
9. Richard, Michael Graham. This striking chart shows why solar power will take over
the world. Narrative Content Group. April 15, 2015.
http://www.treehugger.com/renewable-energy/striking-chart-showing-solar-powerwill-take-over-world.html

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10. DuHamel, Jonathan. Renewable energy causes electricity cost to skyrocket.
Wordpress.com. August 6, 2015. https://wryheat.wordpress.com/tag/renewableenergy/
11. Wind Energy Economics. Wind Energy Foundation. 2016.
http://windenergyfoundation.org/about-wind-energy/economics/
12. Abraham, John. Wind energy is a key climate change solution. The Guardian.
December 10 2015.
http://www.theguardian.com/environment/climate-consensus-97-percent/2015/dec/10/wind-energy-is-a-key-climate-change-solution
13. Abraham, John. The strong economics of wind energy. Skeptical Science. December
28, 2015.
http://www.skepticalscience.com/news.php?n=3237
14. Siler-Evans, Kyle, et. al. Regional variations in the health, environmental, and climate
benefits of wind and solar generation. Proceedings of the National Academy of
Science of the United States of America. December 19, 2012.
http://www.pnas.org/content/110/29/11768.abstract