Solar Power Stands Still

China’s solar power industry is on its way out (and they provide most of the world’s solar panels).


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.


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.

For anyone out wondering what we call a company when “margins turn negative,” we usually refer to it as losses. As in, “if we keep selling stuff for less than it costs us to make it, our losses will cause us to go out of business entirely.”

Good thing that wind energy doesn’t suffer from any of the same weaknesses as solar energy.