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Saturday, September 29, 2012

SoloPower...More from the Department of Energy's failed loan guarantee program

The federal government is making another big bet on solar panel manufacturing with taxpayer money

     The current project of the Obama Administration`s experiment in throwing away taxpayer dollars on the fantasy of green energy after the Solyndra and Abound debacles. SoloPower closed on a guaranteed government loan of $197 million last August, about the time another solar panel manufacturer, Solyndra, filed for bankruptcy. The failure of Solyndra cost U.S. taxpayers more than a half-billion dollars. The second solar panel maker that received a loan from the Department of Energy, Abound, is also now in bankruptcy. Based in Longmont, Colo., Abound spent $70 million of its green energy loan and next week will auction off its equipment in hopes of paying some of that back, a slight chance indeed!

     So far, the stimulus-funded DOE loan program has lost over $600 million on solar company bankruptcies alone. SoloPower, as innovative as their products are, still have to survive in a market that competes against Chinese manufacturers that can undercut their prices by at least 30%, the same marketplace that quickly undermined the survival of Solyndra and Abound. Under these circumstances, this can not be viewed as anything other than another bad risk of taxpayers money by an Administration that continues to promote a policy that ignores the basic facts and realities of economics. A classic case of faculty lounge wishful thinkers and their ever brilliant ideas meeting the consequences and the realities of the business world.