Renewables don’t have tight profit margins, you’re think of nuclear, maybe hydro.
Solar approaches a 100% profit margin after 20 years, wind only ever gets to 90ish but still has the same timeline. Without subsidies, neither oil or coal gets profitable.
Over decades a solar system will pay back itself many times over, but that’s irrelevant to the question of how big of a money pile can business throw at politicians in the here and now.
That’s determined by the profit margin for companies manufacturing and installing them, which tend to be rather thin given the highly competitive nature of the market. No solar installer anywhere near the profit that oil companies are raking in, and the people owning the panels are usually paying off the loan to install them, using the profits to build more capacity, or saving, not buying off politicians.
Without subsidies there would be far less profit for oil companies, which is exactly why it is so important for them to ‘reinvest’ some of their recent massive profits into continuing and expanding said subsidies and slowing down the adoption of alternatives. Buying off the government with its own money is a benefit since it leaves more for them.
Renewables don’t have tight profit margins, you’re think of nuclear, maybe hydro.
Solar approaches a 100% profit margin after 20 years, wind only ever gets to 90ish but still has the same timeline. Without subsidies, neither oil or coal gets profitable.
No, i’m thinking of solar.
Over decades a solar system will pay back itself many times over, but that’s irrelevant to the question of how big of a money pile can business throw at politicians in the here and now.
That’s determined by the profit margin for companies manufacturing and installing them, which tend to be rather thin given the highly competitive nature of the market. No solar installer anywhere near the profit that oil companies are raking in, and the people owning the panels are usually paying off the loan to install them, using the profits to build more capacity, or saving, not buying off politicians.
Without subsidies there would be far less profit for oil companies, which is exactly why it is so important for them to ‘reinvest’ some of their recent massive profits into continuing and expanding said subsidies and slowing down the adoption of alternatives. Buying off the government with its own money is a benefit since it leaves more for them.