Gov’t-Subsidized ‘Clean Energy’ Company Awarded Loan Guarantee to Sell Solar Panels…to Itself
- Posted on March 19, 2012 at 2:21pm by
Becket Adams
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Many Americans were upset when they learned First Solar, an Arizona-based solar panel manufacturer, received millions of dollars in loan guarantees from the U.S. government. Chances are, they’ll be even more unhappy when they find out the same company was given an additional $455.7 million loan guarantee to sell solar panels to itself.
Wait. What?
Yep. First Solar, an already heavily subsidized “clean energy” company, was given further government assistance in order to sell solar panels to itself.
“The subsidy came from the Export-Import Bank, which President Obama and Harry Reid are currently fighting to extend and expand,” the Washington Examiner’s Tim Carney reports.
How did that work? How did First Solar manage to land this deal?
Carney explains:
In 2010, the Obama administration awarded the company $16.3 million to expand its factory in Ohio — a subsidy Democratic Gov. Ted Strickland touted in his failed re-election bid that year.
Five weeks before the 2010 election, Strickland announced more than a million dollars in job training grants to First Solar. The Ohio Department of Development also lent First Solar $5 million, and the state’s Air Quality Development Authority gave the company an additional $10 million loan.
After First Solar pocketed this $17.3 million in government grants and $15 million in government loans, Ex-Im entered the scene.
In September 2011, Ex-Im approved $455.7 million in loan guarantees to subsidize the sale of solar panels to two wind farms in Canada. That means if the wind farm ever defaults, the taxpayers pick up the tab, ensuring First Solar gets paid.
Guess who the buyer was? If you said First Solar, please move to the front of the class.
“A small corporation called St. Clair Solar owned the wind farm and was the Canadian company buying First Solar’s panels,” Carney explains. “But St. Clair Solar was a wholly owned subsidiary of First Solar. So, basically, First Solar was shipping its own solar panels from Ohio to a solar farm it owned in Canada, and the U.S. taxpayers were subsidizing this ‘export.’”
Amazingly enough, Alan Bernheimer, a First Solar spokesman, actually defends this move, claiming that – technically – it’s an “export” because they had to pay a sales tax on the transaction.
But even if one accepts Bernheimer’s exports explanation, it still doesn’t change the fact that the First Solar subsidy goes against the entire reason Ex-Im exists, as Carney notes. Ex-Im is supposed to help create jobs and enable companies to compete with foreign manufactures by having taxpayer dollars backstop the financing.
Sadly, this isn’t the first time Ex-Im has done this sort of thing (see Enron).
“It is critical that we encourage more American companies to compete in the global marketplace,” Ex-Im Chairman Fred Hochberg said about the First Solar deal. He went on to say that the subsidy would “boost Ohio’s economy, create hundreds of local jobs and move us closer to President Obama’s goal of doubling U.S. exports by the end of 2014.”
So, this would be done through competition in the markets, right? And by “competition,“ First Solar mean ”selling to ourselves.”
Wait.
This may come as a surprise to some at First Solar but, generally speaking, “competition” usually involves a competitor.
So what’s the ultimate fallout from this First Solar deal?
“First Solar unloaded its St. Clair wind farm to NextEra Energy, and so First Solar‘s financial troubles don’t threaten to put the taxpayer on the hook for this deal,” Carney writes.
Well, at least there’s that. But are there any greater implications to this story?
Carney end with these final thoughts:
…the Ex-Im subsidy itself was a great case in point as to how national industrial policy pitched in the name of helping the U.S. economy often does nothing to help the broader economy, instead helping only those companies lucky — or politically connected — enough to get the handouts.
Obama, Reid and most of the Republican leadership want to reauthorize Ex-Im this month and boost the amount of debt it can have outstanding. The lobbyists at Boeing, the Chamber of Commerce and the National Association of Manufacturers agree. They’ll claim Ex-Im is crucial to prosperity. And for a few companies, it is.
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Comments (76)
korbin
Posted on March 19, 2012 at 4:56pmhttp://www.whitehouse.gov/the-press-office/2012/03/16/executive-order-national-defense-resources-preparedness
If this doesn’t scare you into standing up, not much will. please go to oathkeepers.org after you read the executive order and do yourself and the rest of us a favor… JOIN oathkeepers.org
Report Post »ScarletRose
Posted on March 20, 2012 at 1:22amAMEN!
Time is not on the side of Right, these days, because the couch potatoes always think “tomorrow…”
The Door is slamming shut.
Report Post »Micah.Stone
Posted on March 19, 2012 at 4:53pm“Firm sells solar panels – to itself, taxpayers pay”
Report Post »…So now the OBOZO regime has gone to DOUBLE-DIPPING crony capitalism/crony socialism with its corrupt pals.
jhaydeng
Posted on March 19, 2012 at 5:04pmugh
Report Post »kaydeebeau
Posted on March 19, 2012 at 5:51pmMoney laundering ???
Report Post »turkey13
Posted on March 19, 2012 at 6:12pmHey lay off! My grant from DOT is almost complete for 2.2 million to produce a charger to charge a Chevy volt in 4 hrs rather than over 20 hrs at 110 volts it takes now. It won’t work but D.O.T. doesn’t know that. All you have to do is say it didn’t work. You just need to mention green on your application and the money falls off of trees.
Report Post »MYHEROISRON
Posted on March 20, 2012 at 7:18amWhy am I paying taxes to a corrupt government? Oh, to stay out of prison? When criminals have the power to send ME to prison that‘s when I come out shootin’!
Report Post »surf0766
Posted on March 19, 2012 at 4:42pmDid GB talk about the refineries closing today? I heard it but was unable to continue listening.
Report Post »BagpipenAZ
Posted on March 19, 2012 at 4:02pmI live in mesa az where they are building a massive new plant. This thing is huge! Cant wait till this one fails too.
Report Post »2theADDLED
Posted on March 19, 2012 at 5:01pmI’m sure that they are not endangering a lizard, frog or cactus in that area and had the blessings of EPA and fish and wildlife. What’s next seizing property to build these eyesores.
Report Post »quenchmarks
Posted on March 19, 2012 at 6:18pmThere is no such thing as clean energy. All things used to harvest solar energy contains cadmium. Last I heard cadmium is a toxic heavy metal. Why haven’t we heard an uproar from the left about our landfills being filled with cadmium from all the solar coatings used to manufacture solar panels or about the cadmium that is used in solar coatings for glass that is installed in cars and buildings for energy conservation?
Report Post »lukerw
Posted on March 19, 2012 at 3:25pmLiberal Economics is MASTURBATION!
Report Post »HKS
Posted on March 19, 2012 at 3:28pmOnly if they can change hands and stay in time.
Report Post »oldguy49
Posted on March 19, 2012 at 3:37pma year or 2 ago on beck there was an x-socialist that was asked what this administration was going to do……….he said they will raid the treasury and bankrupt the country so they can control everything……….sound familiar
Report Post »smithclar3nc3
Posted on March 19, 2012 at 3:59pmAt what point do we break out the torches and pitchforks then head to D.C. This is theft on the largest scale in U.S. History.
Report Post »Beckofile
Posted on March 19, 2012 at 4:05pmAnd after double down payments from some credit card in space we will have some Canadian warehouses stocked well.
Report Post »Mandors
Posted on March 19, 2012 at 3:15pmNice to see old Barry cutting back on that “corporate welfare” he whined and whined and whined about as a law student an professor.
Report Post »HKS
Posted on March 19, 2012 at 3:26pmThis government has pissed away enough money with this green energy thing to give this country free energy for the next twenty years.
Report Post »Smokey_Bojangles
Posted on March 19, 2012 at 3:26pmHe gets part of that back as a Campaign Contribution.
Report Post »Exrepublisheep
Posted on March 19, 2012 at 3:29pmHard to defend.
Report Post »Hollywood
Posted on March 19, 2012 at 4:01pmHMMM. His popularity is about 47% for, 43 against in some Polls. 47% of workers pay NO FEDERAL Income Taxes. HMMMM, HMMMM. Any connection here is JUST coincidence. IF 100% of workers eventually pay no Federal Income Taxes, that shoud mean his popularity will ZOOM to 100% ?? NO??? VOTE Barry!!!!
Report Post »Anonymous T. Irrelevant
Posted on March 19, 2012 at 3:10pmNow Strickland is co-chairing Obama’s re-election campaign in Ohio.
Report Post »oldguy49
Posted on March 19, 2012 at 3:18pmwhen ceasar was on track to destroy the republic of rome……….the centurian guard stepped in…………………….
Report Post »RJJinGadsden
Posted on March 19, 2012 at 3:19pmI was just wondering how much of this money will come back in the form of campaign contributions for guess who?
Report Post »youdidthis
Posted on March 19, 2012 at 3:09pmcheck and see why gietner was arrested…
foreign bankers resigning.
rumormill dot com
has many other rumors of higher lvl officials arrested also.
trust nothing , verify.
Report Post »Detroit paperboy
Posted on March 19, 2012 at 3:04pmThis green energy scam is one of the biggest rip offs ever perpetrated on the American taxpayers…… It could not survive without the Democrats stealing money from us……. It does not work, it’s unreliable, it’s a joke……
Report Post »keithmichigan
Posted on March 19, 2012 at 5:18pmI liked you getting right to the point. But you said democraps but don’t forget there are republicraps. Not nearly as many of them but keep your eye on em.
Rule of thumb, If private industry doesn‘t do it it’s because it is not financially viable..
Report Post »PoliticalTs.com
Posted on March 19, 2012 at 3:02pmMore unconstitutional spending, and even the repubs want to reauthorize it, what does that tell you about washington?
Report Post »bhelmet
Posted on March 19, 2012 at 3:02pmSoros – where are you? I know you are somehow involved.
Report Post »Mark0331
Posted on March 19, 2012 at 3:10pmSoros Fund Management owns over 62,000 shares of stock in First Solar…
Report Post »Mark0331
Posted on March 19, 2012 at 3:13pm..since 2010…coincidence?
Report Post »barber2
Posted on March 19, 2012 at 3:55pmRead today how his Center for Political Accountability is now exploiting a SEC rule that lets any share holder with more than $2,000 in shares of a company introduce proxy proposals. Bottom line: harass companies / corporations so that they will not donate money to any political causes! And you can be sure that this will NOT be applied to the public unions who line the pockets of Democrat politicians with tons of campaign bucks for their union pay backs ! Just more of the Big Lies and hypocrisy of our Far Left Democrats using old Soros’ billions of media/ campaign funds….
Report Post »barber2
Posted on March 19, 2012 at 3:59pmAnd don’t forget that Soros dumped a tone of bucks into Petrogas ( oil drilling/ Brazil ) after the Democrats closed down our gulf after the spill. This dude is so “ clever” with his money. Sure bought our Democrats !
Report Post »TRONINTHEMORNING
Posted on March 19, 2012 at 2:58pmThese types of reports reaffirm my thought that the libs are at critical mass very soon. My glass is half full; the libs‘ glass is made of some biodegradable mish mash that won’t even hold water. Just like their daily lies and scandals. Tick tock, libs…
Report Post »Darmok and Jalad at Tanagra
Posted on March 19, 2012 at 3:47pmThis the Meth Dealer becoming his own best customer.
Report Post »cuinsong
Posted on March 19, 2012 at 2:57pmThey just keep braking the law but it don’t seem to mater!
Report Post »Besides its not his fault anyway, is the mantra!
So what’s the big deal?
And the band played on “What’s Wrong With This Song” http://www.reverbnation.com/play_now/song_9134749
Mark0331
Posted on March 19, 2012 at 2:57pm“…want to boost the amount of debt it can have outstanding.”…Egotistical criminal madmen are running the country.
Report Post »Athinkerinaseaoflibs
Posted on March 19, 2012 at 2:56pmFor historical reference please jump to “Tea Pot Dome”
Report Post »TheObamanation
Posted on March 19, 2012 at 2:50pmSo basically the taxpayer paid to have solar panels sent to canada ?
Report Post »eternal_vigilance
Posted on March 19, 2012 at 2:41pmThe only difference between now and fifty years ago is now we KNOW then we didn’t. It amazes me how many people walk around with their fingers in their ears saying “la la la la I can’t hear you!”
Report Post »geonj
Posted on March 19, 2012 at 2:40pmwanna bet the canadian subsidiary defaults? but not till after the elections. i look forward to seeing this on network news today.
Report Post »wewantchillywilly
Posted on March 19, 2012 at 2:38pmwouldn’t this be considered fraud? misleading the shareholders because of phony sales?
Report Post »barber2
Posted on March 19, 2012 at 3:38pmReferring to the Obama administration and the current Democrat Party ???
Report Post »SpankDaMonkey
Posted on March 19, 2012 at 2:36pm.
Gov’t-Subsidized ‘Clean Energy’ Company Awarded Loan Guarantee to Sell Solar Panel to Itself….
Stories like this kinda make you wanna drag‘em down by the river and beat’em with a rock, don’t it?…..
Report Post »DSTSS2010
Posted on March 19, 2012 at 7:47pmPlease don’t, you’ll pullute the river!
Report Post »T-2
Posted on March 19, 2012 at 2:36pmdid the Enron exec. get prison time for similar practices?
Report Post »T-2
Posted on March 19, 2012 at 2:35pmthey should put these panels with the Volt and buried both
Report Post »RJJinGadsden
Posted on March 19, 2012 at 3:39pmNah, just put them all together then plug in the Volt. The resulting fire will destroy all of the evidence.
Report Post »HKS
Posted on March 19, 2012 at 2:31pmIn short, it’s a ponzi scheme run by the government and associates to screw the American People and steal tax payer money with the head of the snake OBAMA.
Report Post »barber2
Posted on March 19, 2012 at 2:48pmBingo. The War Against Capitalism continues! With the Far Left at the American helm could there be any other result ??
Report Post »godhatesacoward
Posted on March 19, 2012 at 2:29pmStuff like this makes my brain hurt!
Report Post »barber2
Posted on March 19, 2012 at 3:36pmSure makes me understand why the Lefties hate capitalism ! They just don’t know how capitalism should work , and the way they carry it out, it WON”T work. Their Marxism makes my brain hurt !
Report Post »ShyLow
Posted on March 19, 2012 at 2:28pmGiving Americans free vouchers for solar-panel swould have made more sence…would still be wrong though
Report Post »