That’s a perverse incentive against ecology, case in point. Hear me out. We take citizen’s money to subsidize energy so they can get their energy for cheaper (at marginal level - while still paying the subsidy’s taxes) so they can undertake industrial/residential projects that we wouldn’t do with less energy. In a word, we incentive people to consume more (in a consumerist sense), which is bad for ecology, because we can’t afford them, and neither can the Earth.

Of course, leaving aside how petroleum is subsidized [through the department of defense].

While ecologists usually are in favor of subsidies, subsidies incentive people to consume more, which exhausts our Earth. We should develop less, i.e. we should develop in accordance with a higher facial cost of energy, which sometimes implies having a smaller home and fewer industries, which is what would happen if we didn’t sponsor solar or wind energy [or coal or fossil].

won't happen with capitalism which has an emphasis on economic growth forever...