UK Clean Energy Firms Go Belly Up

I wonder why (via Paul Homewood)

Two clean energy firms go bust within hours ‘because of Tory U-turn on energy policy’

Two of the UK’s leading clean energy companies have gone into administration on the same day, blaming the Government’s U-turn on energy policy.

Nearly 1,000 staff were laid off in Leicester yesterday as home insulation and solar panel provider, Mark Group, fell into administration.

Within hours Climate Energy, which describes itself as “the UK’s largest provider of energy efficiency solutions” had also closed down, announcing the news on their website.

Mark Group blamed the closure on the government’s recent turnaround on energy policy including the removal of subsidies to renewables.

Huh. So, as Paul Homewood points out “Take away the subsidies and see what happens.” We aren’t talking tax breaks, we’re talking direct government monetary input

Subsidy: a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.

Air America, liberals version of talk radio, couldn’t survive without direct and massive input of rich liberals money. They couldn’t survive otherwise. Their advertising revenue was minuscule. The same applies to a goodly chunk of these “green energy” companies, which cannot survive without government, ie, taxpayer, money.

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6 Responses to “UK Clean Energy Firms Go Belly Up”

  1. drowningpuppies says:

    The problem begins with the issue of government picking winners and losers in the first place. Venture capitalist firms exist for this very reason, and they choose what to invest in by looking at companies’ business models and deciding if they are worthy. When the government plays venture capitalist, it tends to reward companies that are connected to the policymakers themselves or because it sounds nice to “invest” in green energy.

  2. Jl says:

    Cue Jeffery mis-representing the word “subsidy” as he continually does in his posts even though the definition is right in front of him in 3….2………

  3. Jeffery says:

    Sounds like they have economic ignorati in England too. Let’s see if the conservatives send them into another recession.

  4. john says:

    ahhh yes some companies do fail, some prosper. The cost of solar has fallen by 2’3s in the last 6 years it is expected to drop by another 30% in the next 2 years. Meanwhile coal company stocks have dropped by 90%
    Even dirty China is cutting back on coal and going heavy on solar http://www.cnbc.com/2015/01/12/has-war-on-coal-unearthed-the-ultimate-value-stocks.html

  5. jl says:

    “Seems like they have economic ignorati in England, too.” Why yes, they do. That would be the ignoramus that approved subsidies for green energy.

  6. jl says:

    As John unwittingly proves our point…”The cost of solar has fallen 2’3s (two-thirds?) in the last 6 years..” Then why would they be failing?

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