Slashdot Mirror
The World's Largest Renewable Energy Developer Could Go Broke (huffingtonpost.com)
An anonymous reader quotes a report from The Huffington Post: There is a "substantial risk" that SunEdison may file for bankruptcy, the world's largest renewable energy developer said in a regulatory filing on Tuesday. The company's fall isn't a referendum on the solar industry as a whole, as much as it is on SunEdison's aggressive growth strategy fueled by excessive debt and financial engineering, analysts say. SunEdison "just thought they were smarter than everyone else," said David Levine, the founder and CEO of Geostellar, a solar energy marketplace that has done deals with the company.
SunEdison loaded up a total of $11 billion in debt to develop or acquire renewable energy projects. The company's shares have fallen steeply since they hit a high of $30 in July. They were at just $1.26 before the filing. The stock immediately dropped another 40 percent when the market opened after the filing, and the company was trading at just $0.59 by Tuesday lunchtime.
SunEdison loaded up a total of $11 billion in debt to develop or acquire renewable energy projects. The company's shares have fallen steeply since they hit a high of $30 in July. They were at just $1.26 before the filing. The stock immediately dropped another 40 percent when the market opened after the filing, and the company was trading at just $0.59 by Tuesday lunchtime.
You kidding?
Tax breaks paid for 60% of my solar system. The only way it made economic sense.
Never answer an anonymous letter. - Yogi Berra
Nope!
Federal subsidies were just renewed in full for 3 years so this has nothing to do with any expiration, just an overly ambitious business model. In fact, even if you removed all subsidies from residential solar installations (currently the most expensive per watt) you'd still break even before the panel warranty on production runs out in a lot of places. That price has fallen almost 30% over the past 3 years thanks partly to the last subsidy. When this renewal is done most of the country should have the option for a residential install with a break even point in under 10 years...with zero subsidy! Non-sarcastic thanks, government!
Fossil fuels receive $5.3 Trillion in subsidies annually.
Subsidies for fossil fuels amount to $1,000 a year for every citizen living in the G20 group of the world’s leading economies, despite the group’s pledge in 2009 to phase out support for coal, oil and gas.
https://www.imf.org/external/p...
I don't read your sig. Why are you reading mine?