Last month I wrote about Spanish solar subsidies suddenly shrinking. Now it is Italy’s turn to sever solar subsidies.

Italian utilities are awarded green certificates for megawatt-hours of power generated from renewable energy. If demand isn’t sufficient, the government buys surplus certificates at a guaranteed price. It’s that guarantee the Italian government wants to scrap. It is claimed that the government proposal will threaten $6.8 billion of loans made to wind and solar companies.

As I have written before, the fundamental problem is that without subsidies and mandates, the solar power industry is not economically viable. Unless support is continued almost indefinitely, solar power cannot sustain itself with current technologies.

Ironically it is the established fossil fuel economy that makes possible alternative energy programs.