Billionaire Obama fundraiser Warren Buffett has bought the giant Topaz solar farm in California, estimated to be worth about $2 billion.
Given that much of Buffett’s recent investment has been investment in big government — such as a too-big-to-fail bank, massive government contractors, and ethanol producers — the natural reaction to the Buffett-solar news is to assume the guy is again seeking federal subsidies.
But that’s not how industry publication AltEnergy Stocks reads it. You see, Topaz’s developer, First Solar, abandoned its plans to seek a Solyndra-type loan guarantee. So, AltEnergy concludes:
First Solar Senior VP Frank DeRosa agrees:
As does Buffett’s guy, Greg Abel, according to Reuters:
This is good news, and these are great arguments for ending all solar subsidies. But don’t go assuming Topaz and Buffett will be making money the old-fashioned way, here — that is, by selling people things they want at a price they are willing to pay. No, it’s only through government coercion that the Topaz solar farm has any customers.
Here’s the key passage from a regulatory filing:
So, some of what Buffett is doing here is investing in an industry that others are fleeing after Solyndra: “Be brave when others are scared.” But he’s also selling what others are required by law to buy.
