Subsidy

How it is used

Used both for renewable support and for keeping fossil fuel prices low. Subsidies are granted, paid, cut, reformed or phased out. Related forms include tax credits, grants, guaranteed prices and capacity payments.

Example sentences

1. Household electricity prices are kept low through a large government subsidy.

2. The new subsidy covers 30 percent of the cost of installing a heat pump.

Common collocations

• energy subsidies
• fossil fuel subsidies
• receive a subsidy
• cut subsidies
• government subsidy

Related terms

• feed-in tariffA support scheme that guarantees renewable energy producers a fixed price for each kWh they feed into the grid, usually for 10 to 20 years.
• phase outTo stop using something gradually over a planned period, for example coal power, fossil fuel subsidies or inefficient light bulbs.
• tariffThe set of prices and rules that decides how much a customer pays for electricity or gas, for example per kWh, per month or by time of day.
• energy transitionThe long-term shift of an economy's energy system away from fossil fuels towards renewable and other low-carbon sources, together with electrification and efficiency.

This word in other fields

The same English word can have a different meaning in another field:

• subsidy · Agriculture
• subsidy · Economics
• subsidy · Public Administration

More terms: Emissions and Energy Policy

• carbon emissions
• net zero
• greenhouse gas
• carbon footprint
• decarbonization
• carbon price
• emissions trading system
• carbon capture and storage
• energy security