2013-07-12

German Giants Pull Plug On Solar Divisions

I think it's worth noting that Siemens and Bosch have pulled out of the solar energy business and are divesting of those assets.

While this is not necessarily an indication that solar has no future, it does point to one problem: Feasibility and profitability. Which is code for greed to a progressive. Not only that, increased competition also has an impact as cheaper panels from China have flooded the market.

Germany is a recognized world leader in solar power and its industry is busting at the seams.

Market forces are magical and can't be regulated to fit an ideological narrative unless you over take it outright.

Right now,  governments use poison pills (e.g. subsidies by picking winners and losers, excessive regulations, inefficient taxes) that could lead to hostile take overs of certain industries (what progressives - communists and socialists alike - call nationalization. Obama's new energy policies subsidized by taxpayers has been an abysmal failure so far. Gotta start somewhere right? Give me your money, punk.

That's not a way to bring prices down nor is it intelligent or wise policy. It's just brute, naked coercive action.

I read somewhere that calculators once cost $175 and now can be bought for $5. The point being prices do eventually come down. This will be the case for solar.

Fair enough.

But what the person neglected to mention is the price of a calculator (which really is just a piece of plastic with a circuit board) dropped because of natural market forces. There was no, I believe, massive government narrative subsidizing or bailing out companies like Texas Instruments.

My point is if solar is all that and a bag of sour cream and onion Old Dutch chips, then it will work itself out over time. This nonsense of "we have no time" is ludicrous and irrational. You can't force that which a market (ie you and me) is not ready or prepared to buy.

Although I have no idea how cold climate countries like Canada, Russia and Sweden and parts of Northern USA can go solar. Do we generate enough heat?







2 comments:

  1. "You can't force that which a market (ie you and me) is not ready or prepared to buy."

    Apparently, some in power think you can.

    ReplyDelete
  2. ...and that's when things get messy and distorted.

    ReplyDelete

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