Did You Know...

   

Solar Company That Received $535 Million Stimulus Loan Guarantee Files Chapter 11

Share
By Doug Powers  •  August 31, 2011 01:58 PM

**Written by Doug Powers

During President Obama’s upcoming job speech, if you do a shot whenever you hear the words “invest in clean energy” you’ll be asleep before the teleprompter’s internal cooling fan kicks into action.

Not that it was necessary, but here’s yet another reason to be extremely wary of that repeated green clarion call:

A California-based solar company that received a $535 million loan guarantee from the Obama administration announced Wednesday that it will shut down.

The company, Solyndra Inc., said Wednesday it would suspend its manufacturing operations and lay off 1,100 employees effective immediately. The company said it intends to file a petition for Chapter 11 bankruptcy protection.

“Regulatory and policy uncertainties in recent months created significant near-term excess supply and price erosion,” Solyndra CEO Brian Harrison said in a statement. “Raising incremental capital in this environment was not possible. This was an unexpected outcome and is most unfortunate.”

The announcement comes at a tough time for the solar industry, which has faced free-falling solar panel prices.

But the Obama administration has doubled-down on its investments in the industry. The Energy Department finalized last week an $852 million loan guarantee for a separate California solar project sponsored by NextEra Energy. Earlier in August, DOE finalized a $197 million loan guarantee for solar manufacturing facilities in Oregon and California.

In July of this year, smelling a carbon-neutral rat, Republicans subpoenaed documents associated with the Energy Department’s loan guarantee to Solyndra:

The Oversight and Investigations subcommittee voted 14-8 along party lines to subpoena the White House Office of Management and Budget for documents related to DOE’s 2009 $535 million loan guarantee to Solyndra Inc. The loan guarantee helped finance the construction of a new plant to manufacture solar panels.

Republicans on the subcommittee launched an investigation into the loan guarantee after Solyndra canceled plans to go public and closed down an existing plant.
[…]
Solyndra said Thursday that its financial outlook is strong. CEO Brian Harrison, in a statement, said the company is “growing rapidly.”

The Republicans were right to be suspicious.

Last year, the company had the additional burden of direct exposure to the “Reverse Midas Touch”:

During a visit to the Fremont facility in spring of 2010, the President said the factory “is just a testament to American ingenuity and dynamism and the fact that we continue to have the best universities in the world, the best technology in the world, and most importantly the best workers in the world.”

Not long ago, Evergreen Solar, the recipient of a $58 million financial aid package from the state of Massachusetts, filed for bankruptcy.

Maybe if the administration would have followed through with the promise to install solar panels on the White House these companies would have had a little more business.

Update:

Solyndra is the third U.S. solar manufacturer to file for bankruptcy in a month as falling panel prices and weak global demand is driving a wave of industry consolidation.

**Written by Doug Powers

Twitter @ThePowersThatBe

blog comments powered by Disqus

While Obama was in Alaska staring down glaciers to stave off climate change, this was going on nearby

September 3, 2015 08:58 AM by Doug Powers

obamaglacier1

China gets a better vantage point to watch Obama perform miracles

Fast Lerner: Subpoenaed tech guy who worked on Hillary’s private server says he’ll plead the 5th (sound familiar?)

September 2, 2015 08:07 PM by Doug Powers

drebin1

Nothing to hear here.

Peer-reviewed study: Obama’s mixed messages contributing to climate change, mass confusion

September 1, 2015 10:19 AM by Doug Powers

obamaclosing

Spending ensues, no matter what (and that’s the important thing)

Peak pandering: Ahead of Alaska visit, Obama officially renames Mt. McKinley

August 31, 2015 07:48 AM by Doug Powers

obamapoint

“The mountain has spoken”

‘Degrade and ultimately destroy’ ISIS update: JV team ‘growing like crazy’

August 30, 2015 12:03 PM by Doug Powers

obamaisis1

Time to escalate the war on climate change


Categories: Afghanistan, Al Qaeda, Barack Obama, Feature Story, Iraq, Politics

Follow me on Twitter Follow me on Facebook