I came across a story today of some enterprising Spaniards who took advantage of the EU’s generous green-energy subsidies to set up and operate a solar energy array.
The subsidies were so generous, in fact, that the operators figured out a way to produce solar energy at night by using diesel generators to shine great, big halogen lights on the panels!
“In time, even the bureaucrats were able to figure out that there must be something amiss with a solar power operation that can produce energy in the dead of night.
“Anthony Watts, the author of the posting, made what I thought was an interesting observation…
“There are so many fees, taxes, add-ons, etc. to power bills here in California now, it is actually cheaper to generate your own electricity running a diesel generator than it is to buy it from PG&E. Anyone have a used diesel-electric locomotive I can buy?
“Hmm, a new business idea? Leasing out and servicing private power generators in California? Nah, the alphabet soup agencies would shut you down before you leased your first unit.”
Big return on subsidies! A subsidy is: paying for something the consumers would not buy at that price.
There are those that want to believe that if you throw enough money out there, something good will come of it. What is forgotten is that the subsidies draw money form the private sector so less is available to develop private goods.