Interesting article recently for The American Interest on how a proposed reduction in solar power subsidies in the cool, cloudy, north eastern US state of Maine, next to Canada, is causing angst in the solar industry:
… the original justification for these subsidies was that by stimulating greater consumer demand, there would be a massive increase in production leading to dramatic falls in production costs. Eventually the subsidy regime…could die away.
… that subsidized solar is growing in foggy, cold, sun-challenged Maine, while without huge subsidies it is in trouble in sunny Nevada, tells us everything we need to know.
… it’s an example of how poorly-designed government subsidies divert resources and slow the march of progress. The technology just isn’t there yet—the current generation of commercial solar panels don’t work well enough for people to install them unless they get fat subsidies and tax write-offs.
The public interest—and the climate—would be much better served by shifting resources from subsidies for substandard and inefficient green tech to research into next generation alternative energy sources that can compete on the merits.
Couldn’t have said it better ourselves.