Home > Financial > Energy Dept. Loans Pending Approval Could Help With Jobs

Energy Dept. Loans Pending Approval Could Help With Jobs

— Photo Courtesy of http://www.mywindpowersystem.com
Solo Power Inc. and 1366 Techology Inc. are preparing to receive financing  from the same Energy Department  loan guarantee program which funded the bankrupt Solyndra LLC and Abound Solar Inc. Both companies qualified for the guarantees last year and are now  meeting milestones required to access the credit and to receive approvals according to executives at both companies.

Funding these project  would help relieve,  even though a small part,  some of  the of the economic pressure because of the great need for jobs and economic growth while at the same time supporting a sustainable conscious and responsible project.

This will be the first funding as early as the end of this year for supporting solar manufacturers since  Solyndra LLC  filed for bankcruptcy last year.  Half of the solar manufacturers that received the loan guarantees filed bankruptcies which caused Republicans in Congress to use opportunity to hold inquiries into the programs turn it  into a negative against President Obama’s sustainable efforts plus  raised questions about the White House influence in funding.

President Obama  is not powerful enough to control the global  marketplace.  The  failures of the U.S. solar projects are in a large part    due to the global market place and the normal odds of success that comes with research and development and any start-up.  Standard for a new company is  a 10% chance the  project will make it to the end of the  second year.

In addition, Asian  countries and predominately China  have demonstrated their competitiveness in  manufacturing including  solar products at prices the other countries including the U.S. and  Germany have been unable to  compete with.

“Those failures won’t prevent the government from honoring other guarantees”, said Damien LaVera, a spokesman for the Energy Department.“As long as they meet the terms and conditions of their agreement, including milestones, they can expect to receive funding as agreed,” LaVera said in an e-mail.

Designed to support innovation at companies developing new energy technologies the Energy Department program does not expect every applicant to  succeed  LaVera said. House Republicans proposed a bill yesterday that would bar the agency from issuing additional loan guarantees.

About 35 percent of the loans, loan guarantees and conditional commitments is for solar power generating project and lessthan 4% for solar manufacturing.  The balance of the  $35 billion for clean energy products are for supporting wind, geothermal, biofuel electric vehicles and other ventures.

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