So we just cut the subsidy right? When Germany, the world leader in solar energy, cut its solar spending budget by 44% in 90 days, the number of solar installs was cut in half. In Spain, where they paid out 68 billion dollars in solar project subsidies between 1998 and 2013, investors in solar projects filed a lawsuit against the Spanish government for cutting subsidies. That whole process made the prospect of renewable energy investments very unattractive. There are an estimated 180 solar panel manufacturers that will go out of business or be bought out by 2015.
Now, let me take a step back and say that I am all for any renewable, clean, sustainable energy source. What I am not for is buying into a concept blindly without addressing all of its facets. Yes, solar energy is part of the solution to independence from fossil fuels; an expensive part. That’s why I say end the subsidies that divert billions of dollars away from other parts of the solution, and let the market decide what it wants.
Guess what if you get rid of these costly subsidies, taxes go down; people have more money to spend, and they will spend it on what THEY want. It’s a simple concept, but then again, I am no government-funded economist …