What is wrong with this picture?
The price of utility scale solar power has it seems almost halved in three years in the United States. Such falls oughtt to make anyone skeptical about whether they are real. The difficulty however with the clean-tech scene is that there are too many advocates passing off as journalists. So, very few people ask the obvious questions.
What is the main cause of the price drop here? Rather obvious. It’s the cost of the modules dropping by around a factor of three. And anyone who is half informed about this knows there is a huge problem. Both the EU and the US government take the official position that China is dumping solar panels below cost on the international market. The EU thinks they might be selling them at almost two times below their actual cost.
So, here is what different branches of the Obama Administration is telling us. That the above the cost reductions are a function of the fabulous success of the Sunshot program. And that a very significant portion of it is a result of China selling America under priced solar panels. The economics of solar power therefore look about as dicey as it gets. Or perhaps we can rely on the dubious economic and industrial policies of the Politburo in Beijing for a while longer.