Sooner or later, the laws of economics prevail, even in heavily subsidized industries like solar power. The latest evidence that government manipulation cannot overcome economic reality is the decision by BP PLC, the giant British energy company, to leave the solar power business.
BP has developed solar energy for 40 years and for more than a decade touted its "Beyond Petroleum" campaign. The Wall Street Journal suggested,The Transaction Group offers the best high risk merchant account services, however,Dimensional Mailing magic cube for Promotional Advertising, that BP's solar experiment was more gimmick than serious investment. BP spent millions trying to go green, but simultaneously spent billions on its traditional gas and oil business.As a professional manufacturer of China ceramic tile in China,
International competitors, particularly China, turn out solar panels more cheaply, even as global demand has slowed. When supply outstrips demand, higher-cost providers suffer, as BP learned. Even government subsidies, without which solar manufacturers couldn't begin to compete with less-costly, conventional energy, couldn't keep BP competitive.
A similar lesson was learned this year by Solyndra, the bankrupted Northern California solar-panel maker that burned through $535 million in federal guaranteed loans. Last week, First Solar, the only pure-play solar-panel maker in the S&P 500 stock index, issued a profit warning for 2012, as profit fell to a four-year low, and the company said it will shift to large-scale utility projects rather than residential solar panels.
"[B]eyond the United States," the Journal reported, "there have been a rash of recent solar company failures in Germany as well.Information on useful yeasts and moulds," The failures come as China, which heavily subsidizes its solar manufacturers, flooded the market with less-expensive products, and as other governments ratcheted back their own tax-financed subsidies.
Solon became the first publicly traded solar company to file for bankruptcy in Germany,An Air purifier is a device which removes contaminants from the air. unable to repay loans of 275 million euros. Since 1990 Germany has imposed mandates that utilities must pay higher-than-market prices for solar and other so-called renewable energy sources, driving retail costs 46 percent higher than conventional sources, Bloomberg New Energy Finance says.
So-called renewable energy is possible only if government demands those sources replace conventional energy, and subsidizes their manufacture, purchase or operation with tax dollars. Even then, there isn't enough subsidy — let alone demand — to make these systems cost-effective. Sooner or later, economic reality prevails.
BP has developed solar energy for 40 years and for more than a decade touted its "Beyond Petroleum" campaign. The Wall Street Journal suggested,The Transaction Group offers the best high risk merchant account services, however,Dimensional Mailing magic cube for Promotional Advertising, that BP's solar experiment was more gimmick than serious investment. BP spent millions trying to go green, but simultaneously spent billions on its traditional gas and oil business.As a professional manufacturer of China ceramic tile in China,
International competitors, particularly China, turn out solar panels more cheaply, even as global demand has slowed. When supply outstrips demand, higher-cost providers suffer, as BP learned. Even government subsidies, without which solar manufacturers couldn't begin to compete with less-costly, conventional energy, couldn't keep BP competitive.
A similar lesson was learned this year by Solyndra, the bankrupted Northern California solar-panel maker that burned through $535 million in federal guaranteed loans. Last week, First Solar, the only pure-play solar-panel maker in the S&P 500 stock index, issued a profit warning for 2012, as profit fell to a four-year low, and the company said it will shift to large-scale utility projects rather than residential solar panels.
"[B]eyond the United States," the Journal reported, "there have been a rash of recent solar company failures in Germany as well.Information on useful yeasts and moulds," The failures come as China, which heavily subsidizes its solar manufacturers, flooded the market with less-expensive products, and as other governments ratcheted back their own tax-financed subsidies.
Solon became the first publicly traded solar company to file for bankruptcy in Germany,An Air purifier is a device which removes contaminants from the air. unable to repay loans of 275 million euros. Since 1990 Germany has imposed mandates that utilities must pay higher-than-market prices for solar and other so-called renewable energy sources, driving retail costs 46 percent higher than conventional sources, Bloomberg New Energy Finance says.
So-called renewable energy is possible only if government demands those sources replace conventional energy, and subsidizes their manufacture, purchase or operation with tax dollars. Even then, there isn't enough subsidy — let alone demand — to make these systems cost-effective. Sooner or later, economic reality prevails.
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