In the Press / 06.09.2017
Caprock’s Matthew Weatherley-White was tapped by Yahoo Finance’s, Rick Newman, to help parse what investors might be able to expect “post-“ the U.S.’s decision to leave the Paris climate accord. This is familiar ground for both, having already discussed the rise and expected fall of government-sponsored alternative energy subsidies under a new administration.
This time around, Weatherley-White points to enduring alt energy tax incentives and proven market trends to assist Newman in forecasting undaunted potential in the green energy space.
“…there are two important tax breaks Congress passed in 2015 that Trump doesn’t seem so bothered by—one for solar, and one for wind and other renewables. Before 2015, Congress had traditionally extended those incentives for just one year at a time, leaving investors unsure of their long-term benefit. But the 2015 law put them in place for 5 years, giving investors a stronger incentive to bet on renewables.
‘The big spook was that Trump would rescind those credits,’ says Weatherley-White. ‘But he hasn’t even talked about that.’
“Government subsidies have undoubtedly helped establish a market for renewables, but costs have now dropped enough that in some instances they’re competitive with the cost of coal or natural gas. And if cost isn’t a factor, government officials and business leaders are much more keen to invest in energy facilities likely to pollute less, since that aligns with public opinion and provides better options if the need to curb emissions grows more acute in the future.”