With the recent closing of Amonix's solar manufacturing plant in North Las Vegas, in addition to the bankruptcy of Solyndra and several other government-aided solar companies, tough questions are being asked about renewable energy subsidies - and they should be. These questions concern every taxpayer.
But any debate on energy subsidies had better include oil, natural gas, coal and nuclear - each has received far more subsidies than solar, wind and geothermal combined.
And let us be clear: Neither Solyndra nor Amonix is a "scam." Each produced quality solar panels - but their competitors were able to sell theirs at a lower price. While Solyndra received a $535 million loan guarantee from the Obama administration, Amonix was awarded $15.6 million in grants approved by the Bush administration.
Governments generally subsidize industries - and invest in them - when the industries are developing new and promising technology that is not yet profitable for the private sector. Governments use subsidies as incentives - in the form of tax breaks, regulations and grants - for research and development. Jet aircraft, telecommunications, computers, the Internet and many major medical breakthroughs were all subsidized in their early stages. It can be risky. But despite Solyndra, the default rates on clean energy loan guarantees have so far been far less than the Department of Energy originally forecast.
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