The Biz Bucks Blog provides former Biz Bucks students and other busy professionals with a summary and commentary of seminal articles from the opinion pages of the Wall Street Journal. You can be notified of a new posting by subscribing to the blog (enter email in box on right) or by following on Twitter: @BizBucksGuy.
Solar Energy and Your Tax Dollars October 23, 2013 10:00 AM
WSJ October 22, 2013, Page A17 “How Government is Making Solar Billionaires” by Allysia Finley
Your tax dollars are making a few people VERY rich. The latest such scam by our federal government is solar energy, particularly roof-top solar, as promoted by Solar City of San Mateo, California. Solar City is run by Elon Musk of Tesla Motor fame, another example of corporate cronyism for the left.
Solar City now has a $57 share price. That’s real interesting since it hasn’t turn a profit. For the past six months, they have lost a cool $61 million. Why a positive stock price? Federal and state tax subsidies for solar are becoming entrenched into our political landscape. The average homeowner has no knowledge of how much they are leaving on the table when they sign a contact with Solar City or one of its competitors for a new solar panel on their home. The fine print show they have surrendered any type of subsidy, letting it accrue to the investors in Solar City and their lot. These investors see the solar boom increasing and are betting on the subsidies always being there. Thus, a positive stock price.
Moreover, the solar industry has pushed another type of subsidy called “net metering”. This requires the local “dirty, scumbag, environmentally criminal” utility to pay a RETAIL rate for any unused solar power moved onto the grid. This is, of course, preposterous. They should only get a WHOLESALE rate. The utility must transmit the unused power and then distribute it and pay a gaggle of taxes before they can sell it. Forcing utilities to pay RETAIL for unused solar is nothing but criminal in itself. Net metering allows the Solar Cities to charge more for their panels, thus inflating the return to their investors.
In Arizona, there is a media fight between the solar industry and the local utility, Arizona Public Service.
The Biz Bucks Guy congratulates APS. Thanks for standing in principle and fighting this crony capitalism favoring the green “entrepreneurs”…who, by the way, includes a firm owned by Al Gore. Elon Musk’s net worth has increased about $5 billion in the past six months with Solar City and Tesla’s crony capitalism made possible by the Obama administration.
[The Biz Bucks Blog is primarily written to former students of Biz Bucks training courses to encourage their daily reading of the three opinion pages of the WSJ. This refreshes principles of Biz Bucks courses and improves business acumen on topics not discussed in Biz Bucks training.]
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