An “Obama Green Success Story” For Dec 9 2014

Many are the posts I have made here at the old blog about the absolute FAILURE of the Regime’s “green energy” programs, and their toll on the Treasury.

Here is the latest on the numbers. From Michael Bastasch at The Daily Caller.com

 

Solar Eclipse: 112 Solar Companies Have Closed Their Doors In 5 Years

Hazardous ? Not according to the Regime. Tell THAT to this property owner.

Since 2009, 112 solar energy companies in the United States and European Union have declared bankruptcy, closed their doors or been acquired by competitors under suboptimal conditions, according to a list put together by Greentech Media.

To date, 76 solar companies have “closed, gone bankrupt, become insolvent” and another 36 have “ended up in assignment for benefit of creditors, or have been acquired in less than positive circumstances,” according to Greentech’s Eric Wesoff.

Greentech has been monitoring solar company closures since 2009, when only some five companies went bankrupt or closed and 5 more were acquired by other companies. But the number of bankruptcies and closures shot up dramatically by 2012 and 2013 to 38 and 20, respectively.

“That was when solar manufacturing overcapacity and price pressure brutally culled the field,” writes Wesoff. “The 2014 dead pool is much smaller and much less painful to view.”

So far in 2014, only eight solar companies have closed their doors while another four have “ended up in assignment for benefit of creditors, or have been acquired in less than positive circumstances,” according to Wesoff.

Wesoff argues, however, that while the list is somewhat “macabre” it’s a good sign for the industry as “solar companies left standing in 2015 are the firms with effective business plans and value to add to the marketplace.”

Solar industry bankruptcies became a hot-button issue in 2011 after Solyndra declared bankruptcy. The company went broke after receiving $535 million in federal loan guarantees from the Obama administration.

Solyndra was quickly followed by Abound Solar and other green energy companies backed by the federal government. Abound got a $400 million loan guarantee from the Obama administration, but only used $68 million before the government cut off funding in the wake of Solyndra’s scandalous bankruptcy.

Executives from Solyndra and Abound blamed China for their financial woes. They argued a flood of cheap solar panels from China were undercutting their ability to compete, since Chinese panels could be made more cheaply than U.S.-produced panels.

“With over $30 billion in reported government subsidies, Chinese panel makers were able to sell below cost and put Abound out of business before we were big enough to pose a real competitive threat to China’s rapidly growing market share,” Abound Solar CEO Craig Witsoe told Congress in 2012 after his company had declared bankruptcy.

In the years following the demise of Solyndra and Abound, U.S. solar panel producers successfully lobbied the Obama administration to slap tariffs on panels imported from China. In July, imposed tariffs between “26% and 42% on equipment made by several Chinese solar-panel makers,” The Wall Street Journal reports.

The move has helped spur domestic solar manufacturing by making their more costly panels more economically viable. WSJ notes that Chinese panels “have been far cheaper than those produced in other countries, driving down overall prices in the U.S. by about two-thirds since 2010.”

Chinese panels now cost about “68 to 73 cents a watt, compared with an average of 83 cents for panels made in Europe, Japan and the U.S.,” WSJ reports.

In 2013, the EU came to an agreement with China on solar panel exports, but companies, led by German-based SolarWorld (which also led the tariff fight in the U.S.), are already accusing Chinese companies of selling panels below the minimum-allowed price.

Aside from high tariffs, solar panel producers benefit from a slew of federal, state and local subsidies and mandates aimed at increasing green energy production.

For example, solar panel users can get a 30 percent federal tax credit for “qualified expenditures for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer,” according to the Database for State Incentives for Renewables & Efficiency.

Most states also have what are called Renewable Portfolio Standards. These are mandates that utilities get a certain amount of their power from green energy sources, like solar and wind, each year. California currently has the most aggressive RPS, requiring utilities to get 33 percent of their power from green energy by 2020.

~

As usual, look for the REAL meat of the story under the potatoes. The last two paragraphs sum it up.

Solar energy is simply NOT viable if left to stand in a FREE MARKETPLACE. The ONLY thing keeping it afloat are government subsidies.

If the nutless and gutless GOPe can find their spines after January 1st, here is ANOTHER item to scrub from ANY future budgets. Let the democrats and media howl. Who cares, except for you nutless and gutless ones.

There is some real good info contained in the links in the story I have left up. If you are bored, check it out, and see just HOW much waste there truly is in these programs.

~

CLYDE. NO subsidies for ANY type of energy use. Viva La Free Markets.

Tagged , , , , , , . Bookmark the permalink.

6 Responses to An “Obama Green Success Story” For Dec 9 2014

  1. captbogus2 says:

    So long as we don’t say, “NO!” those companies will continue to receive the money.

    • Clyde says:

      WE only have ONE way to say NO, Buck. And Boehner has silenced THAT as well, with his steadfast REFUSAL to stop the King Putt agenda.

  2. Kathy says:

    Ok, let me see if I have this straight…first the government funds solar energy, then mandates its use, then gives tax credits for using it. Is that right? Only the government would think that’s the way to do business.

    Anyone thinking of going into the solar business right now would have to be nuts. We’re simply not there yet.

    • Clyde says:

      The circular logic of the left in ANYTHING they touch defies belief, Kathy. The ONLY way one can make money with solar is to be on the King’s Friends list. Good comment, thanks.

  3. Hardnox says:

    Let’s no forget that the Chinese are lending us the money to piss away, then they wait to buy up the assets for pennies on the dollar later. That’s a hell of a business model. Only the left can hatch such a plot and think it is good. They tried this same crap in the 90’s briefly with the same results only smaller. This new bunch of marxists have taken it to new heights while fine tuning the donation schemes.

    • Clyde says:

      Good catch, Boss, and absolutely correct. And, the bastards are FAR from finished. Another good reason Boehner MUST be defeated in the January vote for Speaker, but I seriously doubt he will be.