“…As a cautionary tale, it’s worth gazing across the north sea. Germany had been subsidising its solar power recklessly. Due to the state guaranteeing the revenues for 20 years, no home owner could put a foot wrong by putting a solar panel on his roof. Green Entrepreneurs like Frank Asbeck, founder of market leader Solarworld, became millionaires – and the costs were rising constantly.
Who had to pay for all that? Mr. Average had to. Each and every kilowatt hour of solar electricity had to be subsidized by the customers, through individual energy bills. So prices rose. Soon, Angela Merkel was facing a severe backlash – by the energy intensive industry which was faced with severely mounting production costs, by the lesser partner in her coalition and by consumer groups. Germany’s political leader gave in soon: last summer, subsidies were cut drastically. …”