China: solar stocks plummet as solar subsidies cut to “make electricity cheaper”

Back from travels finally. So much to catch up on.

Last week, the world leading nation in solar panel manufacturing announced big cuts to subsidies in order to make their electricity cheaper. Can you believe? The cuts are big enough for The Motley Fool to headline this “Why the Lights Went Out on Solar Today”. (h.t GWPF)

Put this in perspective — in late 2016, Scientific American declared that China Is Dominating the Solar Industry. Apparently, the Chinese forced the prices down, drove US leaders out of business, and the US could only hope to be second. Without a hint of impending doom, Scientific American titled one sub-part: AN INDUSTRY PROPELLED BY TAX CREDITS. The Chinese grabbed the industry from all over the world, brought it to China, and ran with it. Now apparently rising electricity prices hurt too much.

“According to some veterans in the U.S. solar industry, China bought solar companies and invited others to move to China, where they found cheap, skilled labor. Instead of paying taxes, they received tax credits.”

Last week the Chinese government announced solar subsidy cuts:

[Capital Watch] Chinese regulators said Friday they were unexpectedly suspending construction of new solar […]