Let the Sun Set on Solar Subsidies
Nicolas Loris /
The country that leads the clean energy economy will lead the global economy. We’ve heard some version of that story a number of times from President Obama, whether it be in his State of the Union address or trying to sell the stimulus at wind and solar manufacturing plants across the country. Countries like Spain and Germany are leading the race in the clean energy; as President Obama says, “they’re making real investments in renewable energy.” But what’s at the finish line? If Spain and Germany provide any indication, it’s a slumping economy, and both countries are cutting back the subsidies:
E&E reports:
Only two years ago, Spanish solar energy companies feasting on generous government subsidies expanded at a feverish pace, investing €18 billion (then worth roughly $28 billion) to blanket rooftops and fields with photovoltaic panels. They briefly turned the country into the top solar market in the world.
Then came a monumental case of sunburn. The market crashed under a wave of subsidy cuts, fears of possible forced tariff paybacks and allegations of fraud involving energy produced at night being sold as solar power to collect super-premium prices.