Green Energy’s Bankruptcy Blackout
The Obama administration green energy boosterism is no secret. With big names like Solyndra and Solar Trust of America making headlines every other day, it’s hard to get away from the administrations funding failures. What may come as a surprise is the overall amount of money being thrown away on these green companies that the administration has championed.
Here’s the breakdown of how well green energy is actually doing:
Bankrupt Green Energy Companies that received substantial federal and/or state subsidies:
- Beacon Power Corp: Received $43 million in federal loan guaranteed in 2009 and also received $29 million in PA grants — Bankrupt in October 2011
- Ener1 (parent company of EnerDel): Received $118.5 million in federal loan guarantees — Bankrupt in January 2012 – has since exited bankruptcy
- Evergreen Solar: Received $58 million in MA loan guarantees (an undisclosed portion sourced from federal ARRA block grant) — Bankrupt in August 2011 with $485.6 million in debt
- Solyndra: Received $535 million in federal loan guarantees in 2009 and $25.1 million in CA tax credit — Bankrupt in August 2011
- SpectraWatt: Received $500,000 in federal loan guarantees in 2009 — Bankrupt in August 2011
- Babcock and Brown: Received $178 million in federal grants in December 2009 (4 months after it went bust) – Bankrupt in early 2009
- Mountain Plaza Inc.: Received $424,000 in federal grants through TN Department of Transportation in 2009 — Bankrupt in 2003 and again in June 2010
- Solar Trust of America (parent company: Solar Millennium): Received $2.1 billion loan guarantee in April 2011 — Bankrupt in April 2012
Other Subsidized Green Energy Companies in decline:
- A123: Received $300 million in federal grants and $135 million in MI grants — Declining orders and have forced multiple layoffs
- Amonix, Inc.: Received $5.9 million in federal tax credits in 2009 through ARRA — Laid off 2/3 of work force
- First Solar: Received $3 billion in federal loan guarantees — Biggest S&P loser in 2011, CEO fired
- Fisker Automotive: $529 million in federal loan guarantees — Multiple 2012 sales prediction downgrades for first car release, delivery and cash flow troubles; Assembling cars in Finland
- Johnson Controls: Received $299 million in federal grants in 2009 — Low demand caused cancellation of a new factory, operating at half capacity
- Nevada Geothermal: Received $98.5 million in federal loan guarantees in 2009 — Defaulting on long-term debt obligations, 85% drop in stock value
- Sun Power: Received $1.2 billion in federal loan guarantees — Debt exceeds assets; French oil company took over last fall
- Abound Solar: Received $400 million in federal loans in 2012 — ½ work force laid off
- BrightSource Energy: $1.6 billion federal loan approved in April 2012 – loan obtained through political connections with the administration; absent the loan, Brightsource’s solar power purchase would have fallen through.
In the face of these multiple “successes,” the Obama administration wants to double down and throw more good money after bad. It’s never worked before but hey, there’s always a first time, Right?
One common theme of these companies seems to be the ability to get the Obama administration to give them taxpayer money and then default on their promises without having to repay the money.
Could our public officials be so incompetent or corrupt as to have this happen over and over again?
How could that be?
I could understand one or two green energy companies failing after receiving substantial amounts of federal assistance – the allure of green energy is strong. However, eight companies declaring bankruptcy after receiving federal and/or state subsidies is not only embarassing for the Obama administration, but costing taxpayers considerably. Add onto that the nine other subsidized companies in decline and there is not a single way to spin these facts into something good. The Obama administration needs to be held accountable for all the money they are wasting on these projects.
In a not-so-stunning turn of events, Abound Solar has declared that it will file for bankruptcy. I guess it’s now just one more company that will be added to the bankrupt green energy companies list…
”It’s never worked before but hey…”
Actually, going back to Edison, there have been lots of examples of throwing money at technologies that were thought to be losers before they succeeded. With the attitude in the summation of the article, we wouldn’t have light bulbs.
“It’s never worked before but hey, there’s always a first time, Right?”
Much like the Republicans trickle down theory.
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