Cheap Solar Energy: An Obama Fraud
Editorial cartoon by Michael Ramirez.
Read him on Investor’s Business Daily or Facebook
By 2017 the federal crutch for the solar industry (tax credits) expires and according to many different sources the solar energy industry will collapse like a house of cards.
Experts warn that ending the subsidy will devastate solar power and could cost the industry thousands of jobs. Bloomberg estimates a two-thirds drop in solar installations in 2017 if the credit expires, reports The Wall Street Journal. According to Energy Information Administration data, rooftop installations could plummet 94 percent while utility scale projects could drop by 100 percent.
And as it represents such a tiny amount of U.S. electricity, (0.004 of the total output) there is doubt to whether it will ever be an important part of the future U.S. energy source.
In 2013, General Motors announced it was going to knock another $5,000 off the sticker price of a new Chevy Volt, making it the latest electric car to be steeply discounted as automakers battle to find any
A May 2015 report in The Detroit Free Press said the Volt sales have seen a huge 46% decline compared to 2014’s lousy sales, and that’s with a $7,500 federal tax credit.
The issue with the forced solar energy market is the same as the electric car market.
Generally, in a free marketplace, consumer pressure forces the manufacturer to develop superior products at a cheaper cost. But thanks to all the help it is getting from the American taxpayers (thanks to Obama), the incentive is not as strong. Sales for electric cars haven’t taken off despite the incentives, the solar marketplace is destined to fail once the incentives go away because it uses technology that is more than a century old.
America’s choice is to continue to prop up these industries, or allow the marketplace force a better product at cheaper costs.
Jeff Dunetz is Editor and an conservative author at The Lid
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