The U.S. government shelled out nearly $25 billion in fiscal year 2009 on grants and tax expenditures targeted at the energy sector. That’s according to a recent analysis by Subsidyscope, an initiative of the Pew Charitable Trusts, whose mission it is to raise public awareness about the role of federal subsidies in the economy.
 
A significant chunk of government spending went to making residences more energy efficient. For example, the Energy Department’s Weatherization Assistance Program (WAP), a $5.6 billion program aimed at low-income families, was the energy sector’s largest grant program. Americans in all income brackets benefited from tax credits available for energy-efficient home improvements, such as adding insulation or updating heating and cooling equipment. In fiscal year 2009, tax credits for energy-efficient home improvements totaled $570 million. That figure is expected to nearly quadruple next year, likely due to provisions in the American Recovery and Reinvestment Act.
 
These are encouraging signs for supporters of energy efficiency. But a recent Consumer Reports investigation into U.S. energy policy found that the government could do an even better job of selling its incentives to the public. In our survey of 1,536 Americans, many respondents expressed concerned that getting paid for their energy-efficiency improvements would be too much hassle. Legislators could take away some of that concern by passing Home Star, a $5 billion rebate program that would put the administrative burden on contractors doing the work, rather than homeowners. 
 
See a summary of the existing tax credits and rebates, many of which are set to expire at the end of 2010.
 
—Daniel DiClerico