CO Green dream proves nightmare for taxpayers
GIGAOM reports that, as of last week, General Electric is putting on hold its plan to be a major solar panel manufacturer in Colorado. According to the self-described emerging technology blog GIGAOM:
General Electric was set to become a major solar manufacturer when it announced a 400 MW factory in Colorado last year. Over a year later, though, it’s putting that plan on hold for 18 months or more while it works on coming up with a more competitive technology, Danielle Merfeld, general manger of solar technology at GE, told us on Tuesday.
It was only last month when a company spokeswoman told me by email that GE was still building its factory and hoping to start production in 2013. But the company reconsidered that plan in recent weeks after seeing solar prices tumbled significantly for over a year, and it stopped the factory building activities last week, Merfeld said.
When GE announced it was getting into the solar panel manufacturing business, several states chased after GE’s $300 million project and the promise of 355 green jobs with an average salary of $50,000. Colorado, specifically Aurora, landed the project after granting $28 million in state and local tax incentives. A glowing Denver Post house editorial from October 2011, called it a “coup,” explaining that “a growing green-energy sector in Colorado is a plus as the nation continues to confront issues of climate change and energy independence.”
Sounding like a broken record (for those who still remember vinyl), but we saw this coming in November 2011 when we predicted dark days ahead for solar manufacturers following layoffs from a Detroit based manufacturer .
A local news outlet, WOOD-TV, had the money quote: ”supply for solar products worldwide is more than double the demand, so there is no need to make more.”
This is bad news for Colorado because taxpayers just threw a bunch of incentives at General Electric to locate a solar panel manufacturing plant in the state. Colorado already has several solar panel manufacturers including Abound Solar, Ascent Solar, and PrimeStar.
While losing a competitor might be good for the remaining manufacturers, an over-saturated market means more dark days on the horizon for solar panel manufacturers and thus for taxpayers.
Since November 2011, Abound has declared bankruptcy, GE has pulled the plug on the PrimeStar project, and Ascent has moved away from panels and into new consumer solar products such as cell phone chargers.
Former Governor Bill Ritter’s green dream for Colorado is turning into a nightmare for taxpayers. The question remains how long can Ritter sustain his own $300,000 job as the green ambassador for Colorado’s New Energy Economy, which appears to be the only real job “created.”