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100s Of Solar Co’s Expected To Go Bankrupt

From CNN’s Money.Com:

Solar power bankruptcies loom as prices collapse

By Steve Hargreaves
November 30, 2011

NEW YORK (CNNMoney) — The once high-flying solar power sector is headed for tough times, as a combination of slack demand and massive oversupply is leading to plummeting prices and profits for solar panel makers

The only time solar power was high flying was when it was being held up by massive government subsidies and sweetheart deals.

The past year was already grim. The Guggenheim Solar (TAN) exchange-traded fund is down 60% since January and sits even lower than it did following the crash in 2008.

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

[T]he next couple of years will be wrenching for companies and investors in the solar power space as the weaker players go bust or get bought by larger rivals…

Or the government.

In some ways, the bust was inevitable. For much of the last decade solar power worldwide saw annual growth rates in the double or even triple digits

Both of these things led to a massive amount of available capital. Factories were built and production capacity mushroomed.

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.

Malarkey. If the solar industry had been funded by private capital and not governments, this would not have happened.

The simple truth is that solar power never attracted enough real capital. Just taxpayers’ money.

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

Lack of production caused the prices to fall rapidly? This article is all over the place trying to find excuses. And none of them make much sense.

Solar power is failing because it is not all that it was cracked up to be.

What has to happen to turn things around?

Better access to credit, a more stable subsidy policy and fewer solar panels on the market, analysts say. Fewer panels means fewer solar panel makers.

In other words the only thing that will save solar power is more subsidies and more bankruptcies.

Which just shows what a tangled web you weave, once you practice to deceive. And deception is what these ‘green’ industries are all about.

This article was posted by Steve on Wednesday, November 30th, 2011. Comments are currently closed.

10 Responses to “100s Of Solar Co’s Expected To Go Bankrupt”

  1. Astravogel says:

    The Laws of Physics and Thermodynamics are not
    to be trifled with. Ditto the ‘miracle’ electric heaters
    sold by the ‘Amish’ in the newspaper advertisements,
    and the wonderful ‘all electric’ automobiles. Do they
    have tow cable hooks?
    Fossil, hydro, wood, and nuclear work pretty well, and
    are established science. Perhaps Al Gore will have some
    other wonders coming real soon now.

    • Enthalpy says:

      Without subsidies, many of the pipe dream “alternative energy” schemes would not fly. Research must continue for all types of power generation, but merit should be the yardstick for their implementation.

      Al Gore should do time and pay restitution for his environmental lies.

  2. tranquil.night says:

    “What a tangled web you weave, once you practice to deceive.”

    Woot. How else to notice? Actions & Motives!

  3. proreason says:


    You mean that a product that can only be manufactured with rare minerals that aren’t found abundantly in the US, a product that only works for half the day, a product with a very high failure rate, one that is so ugly it is a blight wherever it is installed, one that competes with alternate technologies that are far more established and far cheaper, a product that requires expensive backups since it is subject to going zero at any time, a product that would require sacrificing land the size of Kentucky to compete nationally, a product that destroys the environment on the lands the size of Kentucky, and a product that seems to attract charlatans and crooks…you mean that that product isn’t soaring in the marketplace?

    go figger.

  4. Rusty Shackleford says:

    “…as the weaker players go bust or get bought by larger rivals…

    On what planet? “Larger rivals”? Where? None of them make money. With what capitOl would they be buying anything anyway? As Steve points out, “or by the government” which would then do what? Make it mandatory to put solar panels on your roof? On your car? In your yard?

    It’s not that these people are delusional….they have just slap run off the tracks.

  5. GetBackJack says:

    Ya’ll shut up, you hear me?

    Every part and parcel of Fat Raven Ranch is run by solar power. Solar WORKS. We are cut off from the grid. Disconnected. FREE. It works beautifully in small applications … shopping centers not so much but out here? Works spectacularly. I even have a trickle charge MAKING HYDROGEN, and we’re adapting one of the tractors to RUN ON HYDROGEN. If Jesse James can crack 200mph on hydrogen through an off-the-shelf Chevy 592 c.i. big block, why can’t I run a tractor on hydrogen? Answer? I can and will. And I make my own hydrogen for free. DON’T HAVE TO ASK NO PERMISSION.

    Know why?

    Because I am a cantankerous ornery bark covered pissed off man who DESPISES dependency. I’m appalled more “conservatives” aren’t just as dead set against dependency, but every time the subject of solar power or alternative energy arises every dad-blamed “conservative” I read goes off like a junkie afraid they’re going to miss their fix if alternative energy rises up to compete with GOVERNMENT SUBSIDIZED ENERGY.

    Do any conservatives have any idea how much government meddling has totally screwed up energy pricing? Development? Delivery? Totally screwed the participation structure? Global politics? That these policies have driven at least 3/4 of the world’s violent shooting wars? My Gawd, I’d think any conservative would be screaming to get loose form this putrid festering hellhole of dependency and spend whatever it takes to cut loose.

    We are and let me tell you, it’s not because I have a vast checkbook to write endless checks out of for crap that only sorta kinda works. This stuff ain’t easy and it ain’t just flip a switch. It takes determination and fortitude to cut loose.

    But by God and my own hairy huevos, I AM NOT going allow this family to be dependent on government trolls, political shenanigans, the State Department and some (blasphemous word) sand jockey to dictate how much energy I can have and how much I’m going to pay for it.

    SOLAR WORKS, people. We’re re-shingling the ranch house right now with UNISOLAR 144 watt BIPVs, solar photovoltaics that for all the world look like roofing shingles. Their efficiency is outstanding.

    It ain’t everybody’s cup of tea, I know that. But dependency is as rancid and horrifying to this family as Obama calling for First Night rights with a daughter getting married.

    Now, all that rant aside, the way that this Administration has effed up the solar biz, effed up the perception of the business of solar energy and farked over solar businesses by handing out hundreds of millions of slush funds to launder through “green” companies is so bad, so disgusting, so criminal it’s as if he was put into office to KILL the business of alternative energy.

    Single-handedly he and his have almost ruined the green energy business sector by criminalizing everything they touch. Damn funny way to go about making the USA into a green nation.

    Think about that for a while, as you gaze upon the wretched countenance of Jeffery Immelt, the slithering snake in the political weed patch who bought enough votes in Congress to force us to pay $6.00 for light bulbs that used to cost us .25¢ … and begin to realize where the attack on solar is coming from.

    And who is served.

    • proreason says:

      nobody said it can’t work, and it may be ideal for you…but it’s an outrageously expensive option with plenty of downsides for people who live on an existing grid and know that this country has fossil fuels that will last for 100 years, at least, and nuclear options that can last far longer. Most people aren’t willing to move to the country and make an investment of tens of thousands on top of the move, the property, the house and the survival equipment to cut themselves off from the grid.

      Make enough sacrifices, buy enough battteries, build enough backups, learn how to fix them yourself and wind can be a viable option as well, as long as cost is no object.

    • GetBackJack says:

      It’s not as expensive as dependency. Look, if we poured as much engineering into each of us being our own grid and then tied THAT grid together we’d be an Army of Energy Davids, to borrow from Glenn Reynolds, and the outcome for national security, personal security and sense of accomplishment would be beyond the ken of most folks.

      A tornado tears through town, only those directly hit would go down … everyone else would be up and running. That’s security and Help money cannot buy. Ice storm, snow storm, terrorist attack … if we each make our own power, WE ARE THE POWER … not them. It’s the paradigm of the Hydraulic Empire taken into Energy.


      Thank God our Founders chose freedom over dependency on the Realm. The expense was total, the cost was all, and the outcome horrific for ‘early adopters’. But … they understood, for my sake the status quo was both intractable and NEVER going to change, just as the paradigm of Others-Controlled Energy is intractable and Never Going to Change. We can argue all we want about petroleum but it is a fixed game that is not going to change.

      Until there’s real competition.

      Opt out. Refuse to play along. Nothing will change until WE change. One at a time until this incredibly stupid process capitulates and rolls over. I’m so all-in with petroleum, I LOVE big block V8s and electric lights at the flip of a switch … but the people who control all of that have us by the legumes and I cannot tolerate that.

    • proreason says:

      Something like 70% of the country doesn’t have enough spare cash to last a month. That’s the reason so few people even attempt what you have been able to do. They can’t afford to do it.

    • GetBackJack says:

      I know, brother, I know. But it has to start somewhere.

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