In the world of renewable energy, few voices carry as much weight as Warren Buffett, the legendary investor and CEO of Berkshire Hathaway. Buffett has long been candid about the economics of wind power, famously stating that his company invests in wind farms primarily because of the lucrative tax credits they provide. “We get a tax credit if we build a lot of wind farms. That’s the only reason to build them. They don’t make sense without the tax credit,” Buffett remarked in a 2014 interview. This blunt assessment underscores a harsh reality: wind energy’s viability often hinges on government subsidies and tax incentives, not inherent profitability. As we examine Berkshire Hathaway’s investments and recent political developments, it becomes clear why investors should approach wind without these crutches with extreme caution.
Berkshire Hathaway’s Dive into Wind: A Tax-Driven Strategy
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Berkshire Hathaway, through its subsidiary Berkshire Hathaway Energy (BHE), has become a major player in the wind sector. BHE ranks No. 1 among rate-regulated utilities in ownership of wind-powered electric generation in the U.S. As of December 31, 2023, BHE owned 12.9 GW of wind power capacity, alongside investments in solar, hydro, and other renewables. Through 2023, the company poured $34.1 billion into renewable energy projects, including shuttering 18 coal-fired power stations in favor of greener alternatives.
But dig deeper, and the motivation aligns perfectly with Buffett’s quote. BHE’s financials reveal a heavy reliance on federal tax credits, particularly production tax credits (PTCs) for wind generation. These incentives have allowed BHE to report negative effective income tax rates for multiple years, effectively turning the tables on the IRS and collecting billions from taxpayers.
The Numbers: Negative Tax Rates and Billions in Credits
An analysis of BHE’s filings shows the division reported negative income tax rates for five consecutive years from 2018 through 2022, thanks to billions in tax credits from wind and other clean energy production. From 2019 to 2022 alone, BHE harvested approximately $6.1 billion in tax payments from the federal government—meaning it received more in credits than it owed in taxes. Sources indicate BHE netted close to $6 billion during this period, aligning closely with these figures.
The trend continued into 2023. In the first quarter, BHE reported a staggering negative 163% tax rate, collecting $363 million in tax credits while generating just $223 million in profits from electricity provision. Berkshire’s 2023 annual report highlights significant PTCs from wind-powered facilities, with effective tax rates as low as -215.1% in some periods. Even in recent years, BHE has secured about $2 billion annually in federal tax credits, maintaining negative rates into 2024.
These tax advantages aren’t anomalies—they’re baked into BHE’s business model. PTCs for MidAmerican Energy’s wind facilities (a BHE unit) began expiring in 2014, with the last set to phase out by 2032, but extensions and new projects keep the credits flowing. Without them, as Buffett himself admits, the math doesn’t add up.
Broader Berkshire Investments: Energy as a Key Pillar
While BHE represents Berkshire’s direct foray into energy production, the conglomerate’s overall portfolio as of mid-2025 reflects a diversified approach. Berkshire’s top stock holdings include tech giants like Apple (22.31% of portfolio), financials such as American Express (18.78%) and Bank of America (17.48%), and consumer staples like Coca-Cola (9.31%). Recent additions in Q2 2025 include positions in Nucor and UnitedHealth Group, with ongoing trims in Apple shares.
However, BHE stands out as a wholly owned subsidiary, not a stock holding, and it’s a cornerstone of Berkshire’s non-insurance operations. In 2024, Berkshire took full control of BHE, underscoring its commitment to energy—albeit one subsidized by wind credits. BHE Renewables continues to develop wind, solar, and geothermal projects, with commitments like a $500 million clean energy investment in West Virginia. This isn’t altruism; it’s smart investing where subsidies bridge the gap to profitability.
Political Winds Shift: Trump’s Crackdown on Wind
Buffett’s skepticism gains new relevance amid President Trump’s aggressive stance on wind energy in 2025. On his first day back in office, Trump paused new leasing and permitting for wind projects on federal lands and waters. This included a temporary withdrawal of all Outer Continental Shelf areas from offshore wind leasing, effective January 21, 2025.
High-profile halts followed, such as the August 2025 order to stop construction on the Revolution Wind farm off Rhode Island, which was 80% complete. Similar actions targeted projects like Empire Wind in New York, throwing the industry into chaos and potentially costing thousands of jobs. Interior Secretary Doug Burgum went further, declaring offshore wind has “no future” in the U.S. under the current administration.
Trump’s moves align with his longstanding criticism of wind power, often citing unsubstantiated claims about its impact on wildlife and aesthetics. With subsidies under scrutiny and projects grinding to a halt, the wind industry’s fragility without government support is laid bare—echoing Buffett’s warnings.
The Investment Lesson: Subsidies or Bust
Buffett’s track record proves he’s right: Wind energy thrives on tax breaks. For individual investors eyeing wind stocks or funds, the message is clear—proceed only if subsidies persist. Without them, projects risk becoming uneconomical, as costs for turbines, maintenance, and intermittency issues mount. BHE’s success is a case study in leveraging incentives, but as Trump’s policies demonstrate, political winds can change direction overnight.
In an era of energy transition, diversification remains key. Berkshire’s broader portfolio, blending tech, finance, and subsidized renewables, offers a blueprint for resilience. But for pure-play wind? Heed the Oracle of Omaha: No tax credits, no deal.
As a consumer and a tax payer nobody every talks about who just paid for all of the proffits that Warren Buffett put in his pocket. Consumer electricity cost has been dramatically increased accross the world due to the addtion of wind and solar, and the subsidies and printed money are only part of the equation. Someone has to pay the national dept down, or should we just write it off, and print more money? Are you paying attention who benifits from wind and solar?
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