On Fri, Jul 20, 2012 at 9:59 AM, Jerry Barnes <[email protected]> wrote:
>
> "Political BS aside....why are these companies failing? Is there
> really no money
> to be made in the alternative energy business???"
>
> * Overseas markets can and do make the same items for cheaper.

This is true, although it isn't a level playing field because of
massive subsidies and dumping in China, hence recent trade disputes
and tariffs.

> * They don't work.  At least they don't work as well as the current
> alternatives.
> * They are more expensive (even when bought from overseas) than the current
> alternatives.

These are not really true. In fact, the reason why there have been a
number of business failures in the area is because the technology is
developing too fast and the price is dropping too quickly. When you
build a new business to create Technology A with a plan to sell it at
Price B and then another company quickly comes along with Technology X
that sells at Price Y and Y is quite a bit less than B, it is awesome
for consumers but not so good for the first company.

Right now, solar energy is finally reaching the critical mark of being
about 12 cents per kilowatt hour, which is our national average for
energy. But the cost has been coming down exponentially, which means
that 10 years ago when a lot of these companies were started, the cost
was significantly higher. The rapid reduction in costs is great for
consumers but has been very difficult on the finances of companies
that had to make significant infrastructure investments when prices
were higher. The backing of those investments has helped reduce the
consumer prices we see today but at the cost of some of those
companies along the way.

Cheers,
Judah

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