Solar Power, The Future Is Here ?
President Barrack Obama said "The future is here," Obama said during his visit. "We're poised to transform the ways we power our homes and our cars and our businesses. ... And we are poised to generate countless new jobs, good-paying, middle-class jobs, right here in the United States of America."
Solyndra ,a solar company that served as a showcase for the Obama administration’s effort to create jobs in clean technology recently shut down , leaving 1,100 people out of work and taxpayers obligated for $535 million in federal loans.
In June 2011 the US Department of Energy offered a conditional commitment to lend $ 359 million to a solar company ,Sempra Generation, to construct a solar -power project west of Phoenix that will sell solar power to northern California. The total project cost would be $500 million. Solar panels will be supplied by Suntech Power Holdings Co., a Chinese panel maker.
In January, the Department of Energy announced a $967 million loan to NRG Solar to construct a plant in Yuma county, Arizona. The solar panels will be supplied by First Solar Inc of Tempe. Another loan was approved for $1.45 Billion to Abengoa Solar of SPAIN to build a solar-power plant near Gila Bend , Arizona.
Note that the loans are coming from the FEDERAL FINANCING BANK, a government corporation CREATED to cut the cost of federally assisted borrowing. The solar energy loans are government guaranteed by the Energy Department. On the surface it appears that the money and risk is at taxpayer expense if the loans cannot be repaid.
JUNE 25, 2011 an article Budget Ax Hangs Over Aid for Solar
On the endangered list is a US Treasury loan guarantee program, set to expire in December. The Solana project in Gila Bend, it should be noted that the solar energy loan guarantee for the solar power system is slated to end Oct. 1, 2011.
The commercial banks today cannot lend money long-term at acceptable rates. The loans have to have a rate that will leave the company enough revenue to pay off the debt. New banking legislation controls the financing of the developments.
The solar power and wind power alternate energy systems are the most expensive ways to generate electricity according to the US Energy Information Administration. Senator Reid announced last month that the Energy Department will provide conditional guarantees for the Crescent Dunes Solar Energy company solar power system project in Tonopah, Nevada.
Lobbyist for the solar power industry believe that at least one of the two sections of the loan guarantee programs will be approved .Section 1603 Treasury Grant program, which gives solar energy companies a grant of 30% of the cost of a solar power system may be in jeopardy.
The Stimulus Package ( $1 TRILLION ) in addition to financing solar energy companies has also furnished Federal Grant money to train workers for various green jobs. The Opportunities Industrialized Centers of America Inc. was one of six to get $38 million in Green Jobs Innovation fund . OIC officials didn’t know how many workers would benefit from the grant. A previous grant of $ 4.9 million was able to place 50 workers. The organization , OIC was founded as a non profit network of employment and training programs aimed to help those who have a harder time finding work because of the lack of skills or because they have been in prison.
President Obama and the Democrat controlled Senate attempted to pass a Cap and Trade Bill.The Bill was defeated by a vote in Congress. Another version of Cap and Trade for the solar industry in Arizona by Arizona Solar Power Society has surfaced. The ASPS would raise Arizona tax credits for solar power from $1000 to a maximum of $12,000 to pay for the tax credits, the State would sell the Renewable Energy credits, or REC’S from the solar projects getting the tax breaks.
Rec’s represent the environmental attributes from renewable developments such as solar power panels and wind turbines. The plan would set up a REC trading exchange for the State to sell the REC’S it receives from providing tax breaks to solar energy companies.
President Obama on his recent bus trip to Illinois was told that new government regulations were hurting the private sector to create jobs. Recently the President voided a new EPA regulation that would cost the private sector $ millions plus a further loss of jobs.
A recent article dated June 29, 2011 in Opinions section of the local paper was , Navajo Generating Station Key to State Water Supply.
One power plant, the Navajo generating station, provides nearly 95% of the electricity needed to deliver water from the Colorado river to Arizonians. The US Environmental Protection Agency is set to release NEW emission regulations for nitrogen oxides, a haze-forming pollutant. The NGS plant this year.has installed $45 million in new controls for nitrogen oxides.
The future uncertainties of the renewal of land and water leases including the addition of new EPA regulations would force the owners to close the plant. The closing would have consequences on all parties should the plant close. The cost of energy from the Colorado river would affect water rates for most of Arizona’s population. The Navajo Nation and Hopi Indians earn $millions in wages, lease payments, and royalties related to the plant’s operation.
Where is the President and Congress on providing Jobs and fixing the Economy? On Thurs. Sept 8, 2011 the President will offer his new job plan to Congress and the American people. Irrational, insane and irresponsible for the Obama Administration and Congress not to control the EPA and other US Government agencies in these troubled times. Will there be a solution soon?
Some Additional information regarding solar and wind power.
Tracking Obama stimulus money for renewable energy to China
By Russ Choma
Conclusion Solar panel manufacturing may be profitable for some countries where skilled labor can be found cheaply, especially as long as governments direct consumers to purchase electricity from such sources, regardless of economics. But, in the United States, solar panel manufacturing plants are closing and the “green jobs” associated with them are evaporating. One may wonder why, but the economics are clear. Without massive subsidies, these industries cannot survive, and without policies that force these products to be purchased, they can’t survive. European countries (e.g. Spain and Germany) are examples where legislative and regulatory policies required solar energy to be purchased at rates far above the going retail rate. These countries found that they had to slash subsidies because of high rates and little power production due to low capacity factors of solar panel plants.With such European experiences, and with companies closing down solar manufacturing plants and laying off workers, why must our government continue to push for these expensive technologies that cannot survive in the market place on their own?
President Obama says that the time for action is now. On Sept.8, 2011 the President will lay out his jobs plan to a full session of Congress and the American people.The President wants the public to ''BUY AMERICAN''
Your Author Jon Ewall
Jon's website http://www.chicagoconsultant.com/page1.php
Your author is a online marketing consultant of products offered on the internet. Jon’s website blog contains a variety of interesting subjects and articles that he has written