Spain: Solar Investors Face Bankruptcy
Drastic cuts of solar subsidies will cost owners 920 million euros in 2014. Meanwhile solar companies owe 22 billion euros to the banks.
“The sun could be yours,” the Spanish government promised in 2007, encouraging citizens to invest in solar power. Many who did now wish they could give it back.
Tens of thousands of indebted Spaniards have found themselves lumbered with fields full of expensive solar panels whose subsidies have been unexpectedly cut in the financial crisis.
“How do I feel? Completely fooled,” said David Utiel, a 37-year-old teacher who invested in a solar plant, recalling the government’s sunshine slogan.
“Fooled, swindled, disappointed, disgusted.”
He was one of the 62,000 ordinary citizens in Spain who campaign groups say have been caught in a financial sun trap.
Along with 23 of his neighbours from Madrigueras, near the eastern city of Albecete, he jointly owns nearly 360 solar panels which stand in a field of wild grass and red poppies.
“It was the government that gave us the idea,” he said, walking at the foot of the vast black panels.
“It was supposed to be a good idea to put your money in the whole solar energy thing. They said it could be very profitable.”
In return for promises of a regular return, he invested 450,000 euros ($620,000) in the field in 2007.
“We are completely ordinary people, country people from the village. Some of us work in education, some in farming, others in small businesses,” he said.
“The idea was not to go chasing after subsidies and become millionaires or anything like that. It was to have some kind of pension.”
Long favoured by the state, renewable energies are now feeling the pain of Spain’s economic austerity policies.
Spain’s government is taking drastic measures to slash a 26-billion-euro electricity deficit after years of paying subsidies to keep prices down.