Friday, October 19, 2012

Stop Me If You've Heard This One Before...

Brad_in_MA sends in yet another green company that's been flushed...

Solar energy firm Satcon Technologies announces bankruptcy filing
It's the second Massachusetts clean energy company to file for bankruptcy protection in as many days. Satcon Technology Corp. (Nasdaq: SATC) announced Wednesday it will seek Chapter 11 bankruptcy protection while it reorganizes its capital structure.
Now, in their defense, Satcon never took money from the government - but that might be because they were "never able to sustain profitability". They did manage to default on a $16 million bank loan, and in 2011 saw Satcon labeled the "worst performing stock of 2011". Satcon provided the power inversion equipment for solar panels, so it's only logical that if solar companies were having trouble, then related companies would as well.

One of the underlying reasons cited for the collapse, though, was "oversupply" - you know, much like the Chevy Volt. No one wants this stuff, especially not at $$$$ per kilowatt hour. You have to wonder, though - if President Feckless hadn't cut off the Chinese supply of inexpensive solar panels, might Satcon have survived? With cheaper panels come more people looking to use said panels, and that means more people looking for power inverters. Obama may very well have killed the only green business that *didn't* sidle up to the ZOMG FREE .GOV CHEESE trough...

It sure seems like the only green these days is the money spent on lawyers filing Chapter 11 papers...

That is all.

2 comments:

JD said...

Having looked at solar power I have to dissagree they did go to the government free stuff rout, just in an interesting way. . . if you put thise on your house the .gov says the energy companies have to track what you make and pay you for it. . . so they tell you the panels pay for themselves through lower enenergy bill and the pay back from the utility that the .gov guarentees for x years for your "solar credits". . . traided like stocks. . . so the .gov is still in there just not as obvious.

notDilbert said...

....and in Mass the State has mandated that all Utilities must have a % of thier Power genrated by Solar/Wind etc Therefore Solar Power gets "Bid up" to ell for ~$ 0.48 KWh for electricy that the utilities can sell for $0.14 Kwh which is good when you can produce Solar power at ~ $0.35 KWh.

But not so good without the Solar credits, or when the Cape Wind project comes on line and the bid price drops below the cost of Solar.