CNN: Solar Prices Collapsing, Bankruptcies To Follow

Welcome to Obama's "Green Economy".

Two high profile companies have gone bankrupt in the United States -- government-backed Solyndra and Evergreen -- and analysts anticipate more failures ahead.

"Solyndra was just the beginning," said Jessie Pichel, head of clean energy research at the investment bank Jefferies & Co. "We're going to see a lot of companies go bankrupt."

Just how many? Of the few hundred or so solar panel makers worldwide, just 20 to 40 are expected to remain standing in a few years time, said Mark Bachman, a renewables analyst at Avian Securities.

...

But just as all these new solar panels were making their way to market, the debit crisis hit in Europe. The generous subsidies offered to solar power by European governments and utilities were cut. Demand for solar panels fell.

Plus, solar project developers were having a hard time getting credit to build new power plants, further cutting into demand. Prices for solar panels began falling rapidly.

A year ago solar panels were selling for $1.50 to $2 per watt, said Ramesh Misra, a senior analyst at Brigantine Advisors, a research outfit. Now they sell for half that, and the decline hasn't stopped.

It's almost as if an industry built on government subsidies for producers and industry and government subsidies for consumers is doomed to failure. So naturally the liberal response will be...more subsidies!

posted by DrewM. at 11:03 AM

| Access Comments