“A decent provision for the poor is the truest test of civilization,” wrote Samuel Johnson, capturing society’s need to care for those who have little.  These days the Great Society isn’t just providing for the needy, it is buying high tech electricity generating equipment for the well-off.

As U.S. states begin to feel the fiscal pinch caused by President Obama’s economic stagnation policies, they would do well to end their subsidies to middle class families to purchase… solar photovoltaic systems.  Yes, seriously.  The Washington Post reports that New Jersey, Maryland, Pennsylvania and the District of Columbia all provide “substantial state rebates” for fitting the $30,000 systems to residential roofs, reimbursing more than one-third of that cost.

U.S. states are wasting dollars harnessing the sun's powers

The beneficiaries of this state aid prefer photovoltaics to the significantly cheaper energy alternatives of coal, nuclear and natural gas.  Is this a good reason for the taxpayer to pamper to their extravagances?

Attempts by governments to change citizens’ behavior goes to the heart of politics.  Totalitarian regimes impose their preferences through laws, such as those governing the number of children families may have, where people can live and what they can read.  Political elites in the west prefer softer forms of coercion like higher taxes for driving SUVs or tax relief on home mortgage interest.  But the bottom line is always the same.  Those with the force of the state behind them want to impose their choices on you.

In addition to state rebates, these middle class families can receive financial credits worth up to $300 per year for generating renewable energy.  This market distortion device penalizes or rewards big generators depending on the proportion of electricity they supply from renewable sources.

The basis of all this political engineering is the idea that climate change is man-made, harmful and can be reversed by inducing changes in behavior formulated by intellectuals.  High gas taxes, cap and trade and clean energy subsidies– all of which take money out of the pockets of working people – are portrayed as remedies that will be good for us all.

Forget any supposed benefits to the climate.  The photovoltaics subsidy amounts to a straight forward transfer of wealth from one group to another.  Even if the man-made climate change theory were true, a scattering of homes saving a couple of tons of carbon emissions each year isn’t going to have any noticeable impact.

If reducing carbon dioxide emissions is the policy goal, much greater dollar-for-dollar efficiency can be achieved by generating more electricity from nuclear power.  State subsidies for residential photovoltaic systems simply ensure that resources are misallocated, leading to investment in inefficiency and waste.

Since the subsidy is only available to homeowners, it automatically excludes most low income families. 

Moreover, homeowners with low incomes are also very unlikely to show a preference for solar panels.  Even if the subsidy didn’t require them to find $10,000 of their own money, regulatory requirements, permits and building inspections would deter them from applying.  Not surprisingly, solar panels aren’t a feature in poorer neighborhoods. 

Poor communities could doubtless come up with many more useful ways to spend state revenues than a middle-class handout.

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