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When your subsidies undermine your subsidies

Posted By Joanne Nova On February 9, 2012 @ 2:25 am In Global Warming | Comments Disabled

For forty years, people have tried to get Solar to work.  Now, the worst possible thing for the industry has occurred: The Left are serious about trying to help it.

The Large-Scale Solar Subsidies are bountifully generous on an unprecedented scale that involves taxing everything else that moves, but even that generosity is not enough to compete with…wait for it… the even more insanely lavish Small-Scale Solar Subsidies. Who would have thought? Remember these are the same people who tell us that the “free market solution is best”. They offered three times the going rate for rooftop solar electricity, and through utterly predictable market mechanics, created a glut in rooftop solar panels as every man and his dog rushed in to get free electrons from their roofs, and on good sunny days, even cheques in the mail. Now, the large-scale projects are struggling to get major electricity retailers to sign long-term contracts.

 

THE federal government has delayed issuing key grants under its $1.5 billion Solar Flagships program after a preferred applicant, the Moree Solar Farm, failed to meet a December 15 deadline to reach financial closure on its project.

Solar projects have struggled to secure contracts with retailers, who have taken advantage of a supply glut created by the high take-up of solar rooftop panels.

Mr Ferguson said the government remained committed to large-scale energy technologies.

“However, we must also ensure that taxpayer money is spent prudently.”

[The Australian: Government Eases conditions for it's large-scale solar program]

The Greens with their usual acute insight into economic affairs know exactly why the inefficient large-scale solar projects are failing:

The issue has sparked attacks from the Greens, who have accused Mr Ferguson [Labor Minister] of mismanaging the process to maintain coal’s dominance.

If only Mr Ferguson were a Green and knew the true evil of C.O.A.L.  He would not allow those aromatic hydrocarbons to give up so much energy so cheaply..

They just don’t do numbers well do they?

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