Spain's solar energy crisis: 62,000 people bankrupt after investing in solar panels • FRANCE 24

Seventeen years ago, Spain’s socialist government decided to inject subsidies into renewable energy. As a result, thousands of Spanish families massively invested in photovoltaic energy. But, as you'll see in our report, the dream rapidly turned into a nightmare.

[stevemccormack]

I spent 12 years in Spain and it has serious levels of sunshine. Yet, the government pulled benefits for solar and imposed heavy taxes to kill it off. The reason later became clear - When I worked at Naturgy, there was an order given not to discuss alternative energy stuff with the clients. In Spain, most homes are apartments and everywhere has gas for heating and water. I never once saw an electric shower. When a Spanish friend came to my home in Ireland, they had never before seen such a thing. Exactly as the Spanish government want. They are in bed with the gas companies.

[hemmper]

This doesn't only hurt the families/private solar investors, it also hurts how foreign investors views Spain as a country to invest in as a whole. Trustworthy governments factors in. The government should also consider that.

[brakmaster]

Remember always trust your gut feeling and never trust your government.

[benchoflemons]

So if everything went according to plan he’d have a 15 year break even? That’s a horrendous return 🤦‍♂️

[arontesfay]

The lesson: Be careful about investing in business models that rely on government subsidies. Certainly don't spend your entire life savings on it.

[isakaldazwulfazizsunus]

Exact same thing happened in Belgium. And now they want to tax us for producing our own electricity or injecting our surplus into the network. It's insane.

[tom.]

I heard everything I needed to at "the socialist government".

[John_.]

62 billion spent on a solar project in the Nevada desert that was just abandon because it didn’t work and needed billions more to attempt to salvage a fraction of the production that was promised. It just not viable for everyone right now.

[kc]

I counted about 546 panels. 15 year old tech would make this project about 100kw. 1 million euro is very expensive even 15 years ago. Someone made a profit already. In Spain, maybe you can generate 200Mwh+ per annum with expensive trackers. It sounds like initially, the project was profitable with subsidy of more than 40 cents a kwh. Was the subsidy a fixed amount pre-allocated? And when that fund dried up after many jump onto the bandwagon, everyone got burnt. This reporting left out a lot of details.

[MrEmiriv]

In my country (argentina) we have a history of similar subsidies, but with even less juridical security, so I equipped my solar system with batteries so I can be as independent from the grid and the government as possible, don't trust the government.
Also: 15 years for a return on an investment is SCARY

[kkgt]

There needs to be a legal binding contract before such projects are undertaken.

[mikeree]

Korean people invested rural area solar project and lost over 100 millions dollars. The government suppose to back up and private investor keep all the money and they couldn't pay back after the installation. Green project wasn't worked.

[flavio.portela]

That's why I hate the subsidies strategy. I'd rather have a tax break on the solar panels and on the energy sold. The government aid would be instantaneous and equal for everyone, no paperwork, no bs.

[clikerzbot]

When regulators are not engineers just politicians these happens

[KeiTakeshi]

he invested 1 million $ in a business rather than his son's education. I would rather trust my son 104% than the gov these days...

[bradsnyder]

Intermittents are a pipe dream. What other service do we rely on that only works 30% of the time? They use the grid as a crutch and everyone else picks up the tab.

[Barskor]

“What is history but the story of how politicians have squandered the blood and treasure of the human race?”
― Thomas Sowell

[attilavidacs]

Moral of the story, never trust governments to deliver on promises.

[sallylauper]

If solar is a good investment, why does it require so many government subsidies?

[smb]

This is tragic but not unexpected. Things like new energy sources, rebates, civilian involvement, promises based on today's data without regard for the future - a bad outcome is expected in situations like these, particularly in the infant stages of a new technology. It's like trying to jump on a speeding train - the technology is rapidly changing, government finances are changing and the internal situation (unforeseen volume) is changing. Trying to pick one specific target in such a mix is near impossible.