Fatal Conceit

The Fatal Conceit

Another Solar Company which Received $2.1 Billion in Stimulus Goes Bankrupt

Posted by Zachary Woodman on April 2, 2012 at 9:25 PM

Last April, Solar Trusts of America received a $2.1 billion grant from the Department of Energy to build the world’s largest solar plant in California. The company is now filing for Chapter 11 Bankruptcy in Delaware after their parent company, a German company named Solar Millennium who owns 70% of their stake, filed for bankruptcy when they lost the support of the German government. The Chapter 11 bankruptcy for Solar Trusts includes up to $10 million in assets and $50 million in liabilities, running a total deficit of $40 million.

This adds to a growing list of at-risk solar companies who received massive, low-interest rate loans from this administration under the Federal Financing Bank who then went bankrupt. $500 million went to Solyndra who went on to go bankrupt. $1.37 billion went to BrightSource Energy who has lost $161 million over the last three years. $400 million went to another solar company named Abound Solar, that’s 60% operation, who have gone on to lay off 70% of its labor force. $737 million went to a Solar Reserve and PCG project in Nevada which would only create 45 million jobs, costing $16.3 million. The National Research Energy Lab in Colorado received $200 million in subsidies and had to lay off workers after losing $8 million. $3 million, that’s $250,000 per car, went to GM to produce the green Chevy Volt which failed to meet any sales projections, was eventually removed from production temporarily. Using these examples, and there are many more green energy failures elsewhere, that’s $5.34 billion in subsidies that went to failing, bankrupt and job-destroying green energy companies.

Meanwhile, Obama continues to bash oil while up-playing the “promise” of green energy “investments:”

I think it's time they [Oil Companies] got by without more help from taxpayers who are already having a tough enough time paying the bills and filling up their gas tank. And I think it's curious that some folks in Congress, who are the first to belittle investments in new sources of energy, are the ones that are fighting the hardest to maintain these giveaways for the oil companies.

President Obama is moaning about $4 billion in subsidies that aren’t even subsidies, they are really tax breaks that the manufacturing industry also gets, to the oil industry. That would be the very same oil industry that employs 9.2 million Americans and generates $86 million daily in revenue for the government. Yet he thinks that $5.34 billion in taxpayer subsidies to green energy firms that lay off 70% of their workforce, loses millions of dollars and consistently file for bankruptcies are “investments?”

Clearly these government intrusions into free enterprise fail completely. This harms the overall economy by adding to our debt, which continues to devalue your income and economically enslave your children. In addition, this does nothing to help even the green energy company as it over-saturates the market with failing firms. If Obama had any economic sense, he’d abandon paybacks to his big donors and inane attempts to control markets in the green energy markets with these green energy subsidies. However, he does not. Instead, he continues to blow your taxpayer dollars on failed green energy firms while deflecting the failure of his energy policy on an industry which creates 9.2 million jobs. All of this centrally planned failure comes at your expense and all because Obama has this hubris, faulty notion that he and the government know how to run the energy company better than individuals.



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