#greenfail: Chinese Solar Companies Going Broke

Russ Steele

This came in over the e-mail transom this morning: Chinese Solar Companies Losing Money

Chinese solar power companies reported larger-than-expected losses in the third quarter of 2011, with few buyers lining up to purchase solar power equipment. The Chinese companies are trying to stay afloat by selling excess inventory at below-production costs, which has the Obama administration claiming the Chinese are engaging in unfair trade practices.

Exports Collapsing
Solar power accounts for only one-hundredth of 1 percent of China’s electricity generation. Nevertheless, China produces 30 percent of the world’s solar power equipment, which is sold almost entirely for export.

With the European Union cutting back on alternative power subsidies and the United States declining to subsidize and mandate as much alternative power as the renewable power industry would like, Chinese solar power companies are stuck with growing inventories and no buyers on the horizon.

You can read the rest HERE.  But, the bottom line is that solar is four times more expensive than regular fossil fuel power, especially natural gas powered plants.  The more solar that is put up the more back up plants that have to be built as the sun does not shine at night.  Only a politician would mandate power that only works half the time.

H/T to a regular reader for this tip.

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About Russ Steele
Freelance writer and climate change blogger. Russ spent twenty years in the Air Force as a navigator specializing in electronics warfare and digital systems. After his service he was employed for sixteen years as concept developer for TRW, an aerospace and automotive company, and then was CEO of a non-profit Internet provider for 18 months. Russ's articles have appeared in Comstock's Business, Capitol Journal, Trailer Life, Monitoring Times, and Idaho Magazine.

2 Responses to #greenfail: Chinese Solar Companies Going Broke

  1. Sean says:

    Let’s see, the US stimulus money ran out for the most part at the end of the last government fiscal year and the US economy started improving but the Chinese companies dependent on Fed subsidized projects suddenly start losing money. Hmmmm…..any lessons to be learned hear?

  2. Russ says:

    Sean,

    Excellent observation. Very insightful.

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