This is what happens when Government attempts to create an industry where one doesn’t exist, and can’t survive on it’s own
(NJ.com) The market that New Jersey officials set up to subsidize solar energy needs a rescue or there will be disastrous layoffs in the industry, business leaders, politicians and regulators say.
Those in the industry say if the government doesn’t step in to raise subsidy prices paid to solar panel owners, a bust in the market will kill jobs created in the last few years as New Jersey’s solar capacity has more than doubled, putting the state second only to California.
That market works because electric companies must buy solar credits, called SRECs, from panel owners, or produce their own solar power.
Unshockingly, much like with the carbon credit markets, the NJ solar market dropped from $600 each to $100 each. The demand by the consumer was not there, government created an industry, companies see negligible profits for solar, if not losing money, and the product is not in demand. I’ve listened to how the idiotic schemes to place solar panels on homes works when my parents, who live in NJ still, inquired. And now the Government created “industry” needs more government money (read: taxpayer funds) to rescue it. You don’t. You let it collapse. Much like with the Dot-com implosion, the “green” energy sector is not ready.
If they want to dump money into R&D to create viable products for future use, that would be great. Implementing failed ideas now is idiotic.
Teach it does need to be subsidized, mainly because it must compete with the Chinese companies that are even MORE heavily subsidized. The world market for solar cells is continuing to do very well the Chinese subsidize their industry because they know that this will industry will continue to expand and they want to monopolize it.
http://www.solarbuzz.com Has the current prices for solar power per watt, today’s prices vary between 1 and 2 dollars per watt down from 6 dollars per watt in 2001. NO other source of power has gone down by this much. US industry used to supply 40% of the solar cells, now we have fallen to 5% because we can not compete against the subsidized Chinese. Do you think that we should just surrender this market to them ?
john, john, john…..
First, the prices are for kilowatt hours, not per watt.
Secondly, even given the range you cite, the cost per kWh for solar is still 8 to 18 times that of other sources such as coal, nuclear, etc.
Thirdly, your premise on subsidies is flawed. The market is not supporting solar panels. If the Chinese want to throw their money at this, let them. If you want to go live in the Chinese society where you make a buck or two a week, please do.
The fact of the matter is that when you have a subsidized product, the company is guaranteed a profit so there is no incentive to innovate, improve or become more efficient. The incentive for making money is gone. The Chinese, which you so dearly love and support, don’t care about profit. They don’t have the same restrictions on labor and safety we have in this country.
If you want to buy into the Chinese model of producing items, you have to buy in all the way. That includes labor costs and safety costs. If you want to do that, great. Go talk to the unions and other workers and get their approval and then come back to the taxpayers for more money.
We’ll wait.
So, we should subsidize an industry, propping it up from failure, just because the Chinese are doing it?
So, because its fashionable in a Communist regime, then we should do it too? And better (more money)?
HELL NO!
NO ONE. NOBODY IS TOO BIG TO FAIL!
As we shall see soon, not even the gov’ts of the US are too big to fail. The economic clock of this nation is clicking down.
Socialism destroys everything. We were a great and prosperous nation before we allowed Socialists a hold.
Last I checked..
The US Navy protecting the oil tankers coming out of the Middle East…
Isn’t that subsidizing the oil industry?
What about how the government helping the nuclear industry..
Last time I checked, nuclear and oil power was actually working.
Hmmm… so, even if that is true, protecting a vital national interest (national economy and power source and all…) is a bad thing?
And, it isn’t like the national gov’t is giving the oil companies a direct tax-payer funded check in the hopes of doing some miracle with a 50-year old product that has shown hasn’t worked.
Also, I believe there is a international maritime law that prevents commercial fleets from using armed soldiers on their crews. Somehow, some get away with it, but we’ve decided to guard some ships instead of bombing somalia.
And, pray tell how does the US subsidize certain nuclear power generating companies?
I are agree.. protecting our national interest is important..
but without the US Navy protecting the oil companies tankers..
Oil would be more expensive…
Nuclear energy works!
Not sure why we are not building more nuclear power plants.
(just not in my backyard)
in the beginning, the nuclear industry was helped by the US government.
sorry i have to go…
In the beginning, our nuclear energy program was used to power our nuclear warheads. Again, national security interest.
So when the Navy protects cargo ships as well, is that protecting the toy industry? Or the clothing industry?
Of course not. The protection is for the vessel – not the cargo.