One of the big arguments proponents of the ‘green jobs’ scam often bring out is that the argument that China, thanks to its support of green tech companies, will own the future while the United States is left behind.Think again. According to a report on Bloomberg, the Chinese solar power industry is on the ropes; massive over investment has run up against flat demand. Margins have turned negative at some companies where solar panels can only be sold below cost.
“Demand has not lived up to expectations and pricing has collapsed over the last three quarters,” Aaron Chew, an analyst at Maxim Group LLC in New York, said today in an interview. “Most of the major cell, wafer and module manufacturers are poised to report four quarters in a row of losses and this is just the first one.”
The alternative energy market is still an artificial market; except for a handful of novelty customers rich enough to afford inefficient green tech, firms and households only choose green tech when subsidies bring the price within range or regulations force people to choose expensive green products.Two years ago, when delusional greens thought they were on the way to a global carbon treaty, green tech looked hot. But as that project collapsed under its own weight, the prospects for the green market withered. The recession strengthened public opposition to expensive new green regulations, and the European financial crisis means that countries like Spain (which had a big alternative energy program) and Greece have no more budgetary room for frills.Solar power has been touted as the next big thing since the 1970s. After forty years of failure, it may be time to think about solar power the way people used to talk about Brazil: it is the industry of the future — and always will be.