It Could Happen Here

In 2007, the Spanish government of Prime Minister Jose Luis Rodriguez Zapatero passed a law that guaranteed solar power producers a price for power more than 10 times the 2007 average wholesale price paid to conventional energy suppliers. The generous subsidies sparked a rush to solar, and taxpayer costs mounted. Today, the government owes $172 billion to renewable energy investors, but it doesn’t have the means to meet its obligations in the face of rising budget deficits. As a result, more than 50,000 other Spanish solar entrepreneurs face financial disaster.

Tagged as: budget, deficit, energy, feed in tariff, renewable, solar, spain