Green Energy Bubbles and Troubles

The NY Times has an article on how credit and banking issues are impacting the green tech market. (See here). While access to credit facilities is an issue for most businesses any industry that reliant on tax credits (i.e. subsidy) and borrowing has to be seen as suspect. Solar will still be a favored technology for years to come but companies scrambling for new markets to address have to consider that solar is yet another government and social policy influenced sector that someday will have to make it on its own.

When elected officials are forced to make hard choices on spending and resource allocation in an era of declining tax revenues it will also be interesting to see what happens with renewables. A few years from now when the pendulum swings back to more fiscally conservative thinking either by choice or necessity these businesses have to make money or they are done.