Chinese Solar Industry Goes Belly Up
show comments
  • Luke Lea

    “the Chinese solar power industry is on the ropes; massive over investment has run up against flat demand.”

    Typical error in a centrally planned economy. I think we under-estimate the importance of this old piece of Hayekian wisdom, at least when it comes to China: prices are information in a market economy. Without real markets you are flying blind. China is still a communist society we tend to forget. The consequences are predictable.

  • Mark

    I don’t know what’s going on with solar industry, but I know that solar power solved my energy efficiency problem.I was able to find correct and well researched instructions for creating a homemade solar power system. http://twurl.nl/hvml4z

    When all was finished and after a year of usage I noticed that my energy cost was reduced by 60%, which is pretty good. The cost for building the solar system was way lower than the publicly known cost. Companies charge too much for implementing such a system.

  • Dale

    Mark says:
    November 26, 2011 at 5:36 am
    __________________________________

    Whens your break even on investment/labor?

  • Corlyss

    @ Mark:

    Bully for you. I ain’t gonna do that. God invented Edison so I don’t have to scrabble about looking for an energy source sufficient to sustain me and mine. That’s the problem with all these boutique energy bubbles: they are fine for onesies and twosies but forget about large scale production and delivery. They never will be IMO without confiscating 100% of my income in taxes to support these otherwise inefficient and extremely finite options. I won’t have it. If I have to move out of the country, I won’t have it!

  • fiftyville

    Be careful, folks. Mark’s site is reported as a spam domain.

  • When governments run industries, inefficiencies abound.
    Try capitalism and let market forces weed out the inefficient.

  • Harun

    Actually, China combines the best
    and worst of capitalism and central
    planning.

    They get band wagon investments like
    crazy because there are so many subsidies
    and the like – hey I want to start a solaer
    firm, let’s get a billion from Wal Street
    without any working factory, then free
    land from some provincial government,
    some other subsidies and cheap loans,
    and voila we will make millions.

    The problem is 100 other people had the
    same idea and everyone loses money.

  • Chris

    Solar power has been touted as the next big thing since the 1970s.

    Absolutely right. I was going through some old teaching materials a few years ago and I found some reading comprehension passages and quizzes. The title of one unit was “Solar Power – The Energy of the Future”. The copyright year was 1977.

  • Jim.

    @Chris

    It’s worse than that, even. There’s an old Bell Labs educational filmstrip from maybe 1950 at the latest with a name like “Our Friend Mr. Sun”. It goes through a whole set of gee-whiz discoveries in the making, from bluegreen algae crude oil to solar power.

    Maybe we live in a world of accelerating change, maybe we don’t. (Winston Churchill’s view of American history puts the forty years of greatest change for America as being the decades from 1856 to 1896, and I’d be hard pressed to argue against that.) But what seems certain is, our view of “the future” is somehow awfully static. Strange.

© The American Interest LLC 2005-2017 About Us Masthead Submissions Advertise Customer Service
We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.