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The slow death of the solar energy industry

April 11, 2012

The troubles of the US solar industry are well documented.  But it is not only American firms that are struggling.  Even in Germany – green Germany, environmentally conscious and advanced Germany – solar firms are falling like bankrupt dominoes.  Some blame the competition from China, where cheap labor and government policies combine to undercut the profitability of Western companies.  But the bigger problem is probably the inability of solar installations to generate enough power.  Vmisenergy has a much more detailed post on this topic, highlighted by a chart that shows, despite massive government support, generous subsidies and impressive growth rates, solar electricity simply cannot grow fast enough to outpace growing demand.  Even in Germany, solar still accounts for less than 5% of the nations base power.

 

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