Business

Losing Count: Yet Another Govt-Backed ‘Clean Energy’ Initiative Begins Laying Off Workers

Losing Count: Yet Another Govt Backed Clean Energy Initiative Begins Laying Off Workers

A worker oversees production at Abound Solar's Longmont, Colo., factory (Source: ABC News)

Who’s up for another story about a government-backed “clean energy” initiative laying off a bunch of its staff?

“Colorado-based Abound Solar announced this week it has been forced to lay off 180 of its 400 workers as it tries to retool to produce a more efficient type of solar panel in order to keep a technological edge on Chinese manufacturers who are flooding the market with less expensive models,” ABC News reports. Actually, that number from ABC News is dated. Since originally reporting this story, the number of layoffs has grown to 280.

That’s right. A company that received approval in 2010 for a $400 million government loan has just laid off 70 percent of its staff.

“As you know the solar market has been extremely difficult for all manufacturers,” Craig Witsoe, Abound Solar CEO, told ABC News on Wednesday. “To continue to make the panel we make today, to have to sell it below cost, it’s a tough environment to operate in.”

Perhaps in an effort to stave off criticism for yet another ailing DOE loan recipient, Energy Department officials made sure to point out that the federal loan to Abound had Republican support, including an $11.8 million tax credit from an Indiana Economic Development board chaired by Gov. Mitch Daniels (R-IN).

“We will continue to work with Abound as we do with all of our loan recipients as it works through these issues,” said Damien LaVera, a DOE spokesman. “While the challenges facing solar manufacturers have been widely reported, we continue to believe that supporting innovative companies like this is important to ensuring our nation has the ability to compete for the clean energy jobs of tomorrow.”

As alluded to in this article’s headline, this is just the latest in a long line of “clean energy” initiatives that have failed to produce jobs. Earlier this month, you may recall when The Blaze reported that Fisker Automotive, the recipient of a $529 million federal loan, halted production at its Delaware facility and laid off dozens workers.

Before that, A123 Systems, the company developing batteries for Fisker, announced the “temporary” layoff of 125 employees. Oh yeah, A123 Systems had also received a $249 million Department of Energy stimulus grant.

Witsoe blames the failure of the U.S. solar industry on China, claiming that they have created an unfair advantage by selling below market costs.

“We fully support global competition as long as it’s fair,” Witsoe told ABC News. “It’s a company like us versus a country. China plays very hard.”

In an effort o meet Chinese competition, Witsoe says Abound must retool and remodel its production facilities.

“But while that work is being done, he said, the company could not maintain the size of its workforce and had to make the painful job cuts,” ABC News reports.

Despite the layoffs, Abound has been able to maintain its goal of producing solar panels for commercial customers in Colorado and Indiana. To date, the company has used $70 million of the $400 million federal loan and is currently in discussions with the DOE about “revising” the terms of its loan to make sure it can get the rest of the federal funds.

“The jobs will definitely come back,” Witsoe said. “When we rescale with the new product, we will need to hire back likely as many people as we had. We know this is a really difficult thing. We hate to have any job loss in the company. But it was the right decision for the business.”

(H/T: WZ)

Comments (64)

1 2
  • dmerwin
    Posted on March 1, 2012 at 12:26pm

    In the words of that great American philosopher Gomer Pyle “Surprise, Surprise, Surprise”!
    I think we have sufficient evidence to stop green energy subsidies (and oil tax breaks) and look deep into the books of all companies that have had tax supported loans.

    Report Post » dmerwin  
    • dmerwin
      Posted on March 1, 2012 at 12:30pm

      Are we still planning on borrowing 4 billion from China to give to Chinese solar panel companies?

      Report Post » dmerwin  
    • wbalzley
      Posted on March 1, 2012 at 12:40pm

      Do NOT get me started on the Federal Reserve Debt-Money System…it is a CRIME what those people are doing to this country…

      Report Post »  
    • carbonyes
      Posted on March 1, 2012 at 10:13pm

      This is the kind of stuff that infuriates the American taxpayer, and in the smoke filled rooms of the White House, which is occupied by the Imposter-in-Chief, these charlatans sit back in their chairs, gloat and laugh about how they got another one over on the American people.

      Barack Hussein Obama, what part of his name, what part of his nature, what part of his ideology or agenda, what part of his person is American? Absolutely nothing! Zero! Nada! Zip!
      What in the Hell is it going to take to wake the American people up?

      Every dollar that was “loaned” to these energy companies or car companies, promoting the frigging loser Volt, was stolen from the American people.

      We have to come to the realization that it is going to be Obama, his cronies and the elitists or us.
      There is no middle ground. It is a life and death struggle. It is either us or them; good or evil.

      Report Post »  
  • 00gabooga
    Posted on March 1, 2012 at 11:51am

    Is there actually a DOE, or is there just a rubber stamp that says DOE on the handle?

    Report Post » 00gabooga  
  • lvjohn
    Posted on March 1, 2012 at 11:30am

    It has been nearly impossible to get my Ford F 250 to run down the road with solar panels attach to the roof, it seems to run better with diesel. Obama and the Democrats are just plain stupid and ignorant.

    Report Post »  
    • wbalzley
      Posted on March 1, 2012 at 12:37pm

      A solar panel is a mini-power plant, NOT a fuel tank. Currently Solar is NOT effective for running large vehicles. First, you will need a solar array that covers the roof of your house to produce enough power to run your F250. Second, you need a way to store the power while you are on the road.

      Battery technology is improving rapidly, along with fuel cells, electro-fuels, and solar based bio-fuels. However, it could be another 10 years or so before this technology is commercially viable. In the mean time it is probably better to covert your truck to run on NATURAL GAS, but the EPA regulations price it out of most people’s range:

      http://gas2.org/2009/07/31/natural-gas-conversions-could-cost-a-couple-hundred/

      Report Post »  
  • moreteaplease
    Posted on March 1, 2012 at 11:17am

    To date, the company has used $70 million of the $400 million federal loan and is currently in discussions with the DOE about “revising” the terms of its loan to make sure it can get the rest of the federal funds.
    **************************************
    Got vacations, perks, bonuses, etc to pay for before they close up for good.

    Report Post » moreteaplease  
  • G-WHIZ
    Posted on March 1, 2012 at 11:09am

    To: WBALZLEY: You are right about the [nano-antennas]. our sunlight contains a plethora of AC-RF energy, not produced by electronic-human existance. The “boiling”, exploding, rotating of the SUN causes many alternating pusles in the various emmissions comming to earth. This is why we look at the “sky” with [radio telescopes]. So, if we receive our portion(earth’s) of these “waves” and rectify(change to DC) we can use 60cycle-inverters(daytime) and charge backup-systems at night. But, as you say, we have yet, not the fast-enough diodes to efficiantly convert. I am just a DeVry service-tech grad, but have done much info-gathering on as much as possible…cause I love it. {:o)

    Report Post »  
    • wbalzley
      Posted on March 1, 2012 at 12:58pm

      THANK YOU…someone who studies science and engineering! Yes, all we need is a diode in the range of 150-750 Terahertz and solar will cost a TENTH of what it costs for coal, oil, or (my favorite) Natural Gas. This technology would RADICALLY change our energy outlook…

      We need an X-Prize for this technology!

      Report Post »  
  • wvernon1981
    Posted on March 1, 2012 at 10:20am

    How does the failure rate of venture capital compare to the failure rate of the DOE loan guarantee program?

    Report Post »  
  • Listen_then_think
    Posted on March 1, 2012 at 9:40am

    Chinese stuff is garbage, I look on the packages to see if I can find a made in USA. I only buy chinese if there is NO OTHER similar product I can use that is made in USA. Sometimes I am so disgusted that I can‘t find a made in USA sticker I don’t buy anything at all.
    Romney is the man to revive this failing economy thats what he has done for decades. It is his lifes’ work and he has a fantastic record of fixing broken businesses. Let him fix this economy please! Once people are working again, the tiny things that the liberals and Romney haters are freaking out about won’t matter at all.

    Report Post »  
    • wvernon1981
      Posted on March 1, 2012 at 10:19am

      Economies are far different and far more complex than businesses.

      Report Post »  
    • wbalzley
      Posted on March 1, 2012 at 1:15pm

      Business = Micro-Economics = Management of an already existing, limited pool of money.
      Government = Macro-Economics = Creation and insertion of NEW money

      Romney may be a fantastic business person, but unless he understands the principles of money creation and insertion, he will fail at economic policy. He needs to learn that the government does not need to BORROW money. The government can create NEW money so long as our manufacturing capacity increases by an equal amount. MV = PQ

      I highly recommend watching The Secret of Oz on YouTube:
      http://www.youtube.com/watch?v=swkq2E8mswI

      Report Post »  
  • Gonzo
    Posted on March 1, 2012 at 8:24am

    Hey Barry, give me $400 million and I can keep those 180 people employed for a couple more years.

    Report Post » Gonzo  
    • lembrandt
      Posted on March 1, 2012 at 1:12pm

      A little further down in the article it says that the actual number of layoffs is 280…just taking the original amount of $4000,000,000 (not any other subsidiary loans or grants) – it comes to roughly $1,430,000 per laid off person…pretty nice work if you can get it.

      Instead the American taxpayer has been treated to ANOTHER green energy fraud. I don’t know if it is simply graft, embezzlement, reparations or some other classification of criminal activity but Obamamonster and ALL of his cronies need to be in jail for the rest of time for just this alone.

      Report Post »  
  • accuratemech
    Posted on March 1, 2012 at 5:33am

    Are the employees of the company union? I don’t hear union complaints.

    Report Post »  
    • Mateytwo Barreett
      Posted on March 1, 2012 at 7:23am

      Just a shot in te dar, but I would guess union scale would have been “encouraged”.

      Report Post » Mateytwo Barreett  
  • Arc
    Posted on March 1, 2012 at 5:31am

    I’m just a dumbazz country boy, but when I retired from the military and went into business for mysel, I did a “ self designed market analysis”. I investigated and found out how many were doing the same thing I wanted to do versus the population density and the building industry forecast.

    I did look around to see if there were any CHINESE construction contractors as my competition. Fortunately, they all were in China, so I felt fairly safe in my endeavor.

    I did not ask for a loan except for someone to finance my equipment. I was successful when I retired completely in 2002.

    If I can make a go of it for 16 years without governemnt help, surely firms with millions in assets can do the same. But… then again……what do I know.

    Report Post » Arc  
    • lukerw
      Posted on March 1, 2012 at 5:35am

      You know… that you are not a Socialist Liberal stealing from the People in order to create a Communist Dream World!

      Report Post » lukerw  
  • TemayElbor
    Posted on March 1, 2012 at 3:31am

    It seems that more “SOLAR COMPANIES ARE NOW ON WELFARE”.

    The “DEVOURERS” of American resources are everywhere.

    Is there a CURSE in the land?????

    Let us get out from this CURSE….AMERICA NEEDS A MIRACLE ….AMERICA CAN TAP ON THE BLESSINGS OF ROMNEY…..LET US RALLY BEHIND HIM……

    Report Post »  
    • Link8on
      Posted on March 1, 2012 at 8:11am

      Blame China ! Blame China ! Blame China !

      Now our the various solar DOE loan recipients are sounding like the moocher Occupy crowd.

      To be fair, I am still leery of Made in China / PROC products.

      If the quality is too low, then they will have no customers.

      Wealthy job producers should be an aspiration to the OWS crowd.
      Low cost leaders in the Solar industry should likewise be case studied and eventually emulated by the Occupy DOE borrowers crowd.

      Blaming China or anybody else solves nothing.

      Allow me to quote a bit of Sheryl Crow her Soak up the Sun chorus:

      “”"
      I’m gonna soak up the sun
      I’m gonna tell everyone
      To lighten up (I‘m gonna tell ’em that)
      >>> >>> >>> >>> I’ve got no one to blame <<< <<< <<< <<<
      For every time I feel lame
      I'm looking up
      """

      Report Post » Link8on  
    • dmerwin
      Posted on March 1, 2012 at 12:29pm

      Link8on
      I heard we are going to borrow 4 billion dollars from China to give to Chinese companies to develop solar panels. Now that is a ballsy liberal plan.

      Report Post » dmerwin  
    • wbalzley
      Posted on March 1, 2012 at 2:21pm

      @Link8On: Our companies have every right to complain about China, who are able to charge ridiculously low prices because:

      1) The government subsidizes all their business activities
      2) The government seizes land to build factories
      3) The government forces its people to live in the factories where they work
      4) The government dictates wages
      5) The government provides workers with state-funded healthcare
      6) The government does not protect the environment
      7) The government limits outside competition
      8) The government manipulates its currency
      9) The government allows its companies to steal others intellectual property

      How can our private companies possibly compete on a playing field that is this imbalanced? It is like having two football teams. One is forced to train with calisthenics while the other uses weight training and STEROIDS. There is no way you can win…

      Report Post »  
  • tippens
    Posted on March 1, 2012 at 2:18am

    Here are 30mins. of NEWT (2-16-2012)Energy Independence & National Security & Job Creation that will ROCK America.

    Each minute is jam pack with amazing revelations about an extremely bright future if only enough will support a Newt Presidency.

    Be inspired; hang on every word. I did.

    http://www.youtube.com/watch?v=vOImnCrKPZ8&feature=player_profilepage

    Report Post » tippens  
  • DaveOregon
    Posted on March 1, 2012 at 1:19am

    Solar now and forever will have limited application – because a lot of the US does not sufficient solar gain to make it viable economically. Here in teh rainy NW – solar is a JOKE 7-8 months of the year in 95% of the State. Same can be said for 5-6 months across the rest of the northern States. At present – I suppose if you covered he entire state of Texas in solar panels – you could replacea bout 50% of the US daily electrical energy need. Solar will always bea niche market – not a major global market. The amount of $$ the Feds gave was STUPID – because solar is not a global commodity – especially with China able to turn out panels at a 1/5th the csot or even $0 profit for years to break American soalr companies. But then – we have a Nobel Prie winning Physist as Energy Czar. Course – he could not figure his way out bathroom without painted arrows on the floor – but hey – that Nobel Prize – got to respect that – man must be a mental giant (cough-cough-puke-snort and spit).

    Report Post »  
    • Bill Rowland
      Posted on March 1, 2012 at 6:45am

      They aren’t covering TX with solar panels butt they are putting up a lot of windmills. Obumbler and the EPA are forcing the closing of some very efficient coal fired generating plants. I haven’t seen any reports on the efficiency of the windmills but they have sure put a lot of them along the gulf coast.

      OMG

      Report Post »  
    • wbalzley
      Posted on March 1, 2012 at 8:39am

      Don’t write off solar so easily. Do a little research–from sources that are not tainted by political ideology. The ground receives 1kw of power per square yard in direct sunlight. Currently we can use between 20-40% of that power–15% from your garden variety solar panel.

      Efficiency is increasing while costs are decreasing. The result is that the cost per watt is cut in half every 2-3 years. The advances in the past year alone have been STAGGERING. This means that solar will be competitive with coal by 2015.

      I have nothing against fossil fuels (or nuclear). I think we should dig, drill, and frac every last ounce of energy this old land has to offer. I am PRO ENERGY! But in the long run, the numbers point to solar as the last man standing…

      Report Post »  
  • Apple Bite
    Posted on March 1, 2012 at 12:47am

    I’ve lost count and no longer care how many more he gave money to at this point, He’s a got damn criminal in my book….

    Report Post » Apple Bite  
    • Gonzo
      Posted on March 1, 2012 at 8:32am

      Under the Obama watch, the Department of Energy has spent, loaned, or guaranteed loans, of a total amount of $80 billion. See? Nothing to worry about.

      Report Post » Gonzo  
    • wbalzley
      Posted on March 1, 2012 at 8:53am

      @Gonzo: Ok, so Solyndra, and this company have failed to the tune of hundreds of millions of dollars each. If the government has given out $80 billion (thats $80,000 Million!) how are the HUNDREDS of other companies they gave money to faring?

      BTW: How much money did the government have to dump into the development of computers before a viable product was created? How many of those companies failed?

      Report Post »  
  • JBaer
    Posted on March 1, 2012 at 12:05am

    Surely these solar panel companies knew BEFORE 2010 when they got the $$$ (from us tax payers basically) that China made it “tough” for them, and yet they STILL got the go ahead from the gov’t!

    How many more of these green companies are going to put us even more in the red!?

    Report Post » JBaer  
    • oldguy49
      Posted on March 1, 2012 at 12:18am

      i will continue to say…………offer $50 billion prize for clean energy solution that works and power our homes and autos……………….doesn waste a dime………the private sector will find an answer…………….

      Report Post »  
    • 2theADDLED
      Posted on March 1, 2012 at 1:00am

      It’s really hard to invest or sell when you have no job and no money do they take food stamps.
      Putting the cart before the horse comes to mind.

      Report Post »  
    • wbalzley
      Posted on March 1, 2012 at 8:24am

      @OldGuy: We are close to a solution. Solar Nano-Antenna technology can convert 95% of sunlight to electricity, and do it CHEAP. However we need a Rectifier Diode that can convert 150-750 Terahertz alternating current to direct current–the fastest we currently have is 2.5 Thz.

      I say we offer anyone that develops this technology a 1 Billion dollar cash prize and TAX EXEMPT Status for life. That should inspire some creativity…

      Report Post »  
  • KangarooJack
    Posted on March 1, 2012 at 12:01am

    Stop being so mean people! Obama created 7 permanent jobs for those people who make the “This Project Funded by ….yadda yadda…stimulus $$$”

    Report Post » KangarooJack  
  • SpankDaMonkey
    Posted on February 29, 2012 at 11:40pm

    .
    If you believe in Man Made Golbal Warming. Please Spay & Nutter your whole family A.S.A.P..

    Thank You,

    The Rest of US

    Report Post » SpankDaMonkey  
    • KangarooJack
      Posted on February 29, 2012 at 11:59pm

      Thank You for my 1st full belly laugh of the day! :)

      Report Post » KangarooJack  
    • Smokey_Bojangles
      Posted on March 1, 2012 at 12:26am

      And a good way to lessen your carbon foot print is to bury yourself in a big hole.it also fertilizes trees and creates a nice living Environment for cute bunnies and squirrels.

      Report Post » Smokey_Bojangles  
    • Stoic one
      Posted on March 1, 2012 at 2:22am

      Spank that was GOOD.

      Report Post » Stoic one  
    • asybot12
      Posted on March 1, 2012 at 3:18am

      Thanks for the laugh I do have some suggestions as to where to apply such measures but……

      Report Post »  
  • Warpath
    Posted on February 29, 2012 at 11:33pm

    Yea, what‘s really sad is that the people who voted for this wing nut still think he’s doing a good job. And, who can argue that from their point of view? They are doing just as wel, if not better, than they were previously. They either kept a job in a union shop longer than they should have. or their welfare benefits went up, etc… That is the Democrats’ base. Oh, and the cafeteria Catholics who go to Mass weekly only to balk at the mandates of the Church…

    Report Post »  
  • UBETHECHANGE
    Posted on February 29, 2012 at 11:27pm

    But people will still vote for this criminal marxist traitor. Frightening. ABO 2012!

    Report Post »  
  • Geopatriot
    Posted on February 29, 2012 at 11:27pm

    There’s no telling how many different places this Administration has mis-appropriated our tax dollars. When Newt wins the Presidency, I’m sure the lime light will not shine very favorably on Obama and his Minions!

    Report Post »  
  • Chromo200
    Posted on February 29, 2012 at 11:19pm

    What gets me is just because a republican supports waste does not make it right. We conservatives have chastised Democrats and Republican. That is the difference between the Libs/progressives vs Conservatives .. Libs support spending spending spending and as long one is spending there is no problem, while when Bush started his spending spree he lost most of his support base.

    Report Post »  
  • abbygirl1994
    Posted on February 29, 2012 at 11:13pm

    This President and his administration better realize soon, American‘s don’t want solar panels, windmills or electric cars. We don’t want your green anything. We cannot afford it.. it is not reliable and some of them burn up! And everytime a green thing fails is just a bad reminder that it has failed. American’s have spoke! And still you will not listen! How do we get the message out to those who don’t hear the truth?? Copy and paste and email it to everyone in your address book! Lord help us!

    Report Post » abbygirl1994  
    • Micmac
      Posted on February 29, 2012 at 11:33pm

      Solar panels are a good thing it used for the correct reason. The life cycle costing has to make sense. But just throwing up solar collectors without a correct analysis is ludicrous.

      NoBama 2012

      Report Post »  
    • Stoic one
      Posted on March 1, 2012 at 2:40am

      ABBY I disagree, I will gladly buy innovative tech. I bought my first compact florescent in 1978; it cost me $20. When the gov’t & energy company THREW coupons at me -well… I relamped my house. AND I have been slowly relamping yet again; with LED’s. No coupons. I will finish when the LED’s can be in closed fixtures.
      Got rid of my oil furnace – converted to wood heat .. no tax credit and might I add no petroleum taxes.

      I am looking CLOSELY at geothermal heating/cooling/& hot water. The initial money bite? 8-12k tax credit 30% ; energy company credit not sure..

      also natural gas as my automobile fuel this conversion can be done for under a thousand. is it worth it ? don’t know.

      there is a bunch of other stuff out there that is not quite there – they are on par with where wind & solar are.
      This “GREEN” stuff is simply greedy cronyism

      Report Post » Stoic one  
  • Snowleopard {gallery of cat folks}
    Posted on February 29, 2012 at 11:12pm

    What I want to know is how much of the stimulus funds have found their way into Obamas cronies wallets and ‘disappeared’ overseas.

    Report Post » Snowleopard {gallery of cat folks}  
    • Micmac
      Posted on February 29, 2012 at 11:39pm

      It’s not only the stimulus money but NoBama has a slush fund at his disposal to be used at his discretion and is not public information. He used this money to pay off Dem congress peeps that were sitting on the fence about NoBamaCAIR to buy their votes. No one talks about this for some reason. The Overton Window has moved so far left that the D‘s and R’s have a lot in common now.

      NoBama 2012

      Report Post »  
    • nzkiwi
      Posted on March 1, 2012 at 1:21am

      Quite a lot, I would say, Snow.

      There have been some stories about it.

      I’ll see if I can find one.

      Report Post »  
    • nzkiwi
      Posted on March 1, 2012 at 1:35am

      Here’s one. It doesn‘t say that money actually disappeared into the pockets of Nancy Pelosi’s family, but, if you ask me, that’s the way to bet. It’s a “read between the lines” sort of thing.

      http://www.newsmax.com/Headline/New-Green-Loan-Obama/2011/09/30/id/412909

      Report Post »  
    • wbalzley
      Posted on March 1, 2012 at 8:44am

      That is a VERY good question…follow the money…

      Report Post »  
  • Razorhunters
    Posted on February 29, 2012 at 11:08pm

    were not shovel ready…? hehehe…

    the sniveling little weasels…

    Report Post » Razorhunters  
    • Darmok and Jalad at Tanagra
      Posted on February 29, 2012 at 11:14pm

      Dogs make shovel ready jobs. (Hat tip, Rush)

      Report Post » Darmok and Jalad at Tanagra  
    • CatB
      Posted on February 29, 2012 at 11:14pm

      The ads AGAINST an Obama re-election are practically writing themselves … how many failed businesses has Obama used taxpayer money to fund right up until they go BELLY UP?!

      Report Post »  
    • Darmok and Jalad at Tanagra
      Posted on February 29, 2012 at 11:20pm

      CATB:
      The only problem is the Lap dog media would actually have to start reporting. Right now Pravda is saying “Things are getting better, higher gas prices are good, 2 + 2 = 5, these are not the droids you are looking for.”
      Every interview Obama has I feel like I am watching the old SNL skits with Billy Crystal, “Did I tell you, you look maavaalous”

      Report Post » Darmok and Jalad at Tanagra  
    • CatB
      Posted on February 29, 2012 at 11:42pm

      @D & J … that is why ADS are going to be a big part of the election .. only way to get the TRUTH out to most people .. we know the Lamestream media won’t report it! ;-) Hopefully we get someone willing to take on Obama STRAIGHT ON! Not like that wimp McLame.

      Report Post »  
    • Darmok and Jalad at Tanagra
      Posted on March 1, 2012 at 12:14am

      CATB:
      You Betcha. Roger that.

      Report Post » Darmok and Jalad at Tanagra  
  • Darmok and Jalad at Tanagra
    Posted on February 29, 2012 at 11:00pm

    But he saved or created a bazillion jobs. what are a few layoffs, maybe they didn’t pay their union dues.

    Report Post » Darmok and Jalad at Tanagra  
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