News from America and Germany as foreseen - the consolidation in the industry begins!
The green economy strikes again, or shall we say strikes out. Oakland-based Solar Trust of America filed for bankruptcy this week, leaving its planned multibillion-dollar plant in California on ice. The company declared itself insolvent after its parent—Germany's Solar Millennium—filed for bankruptcy in December, and Solar Trust realized it wouldn't be able to pay a $1 million rent check due April 1.
This, despite efforts from larger companies to merge with smaller ones. What does the following quote reek of?
.Solar Millennium, in turn, had beenhoping to sell a controlling stake in Solar Trust to the German company, solarhybrid, until solarhybrid also filed for bankruptcy in March. Then there's Q-Cells, another German solar company, which also filed for bankruptcy this week, sharing that fate with Solon, the Berlin-headquartered photovoltaic firm that went bust in December
I tell you what it reeks of? It reeks of dead fish! Pull the water supply ( a.k.a subsidies ) , big fish eats small fish in a desperate attempt to survive - but even that is short-lived. Result: oblivion. Competition from China is often stated , yet the same European companies also manufactured in China.
Now, here is something to think about - without subsidies, companies die like flies. What does that mean for the real cost of Solar per 1MW?
Play time over folks.
Pretty soon you need take out your calculators and do the math again!