The solar technology developed by the innovative company Solyndra LLC appeared to be a progressive solution for energy concerns back in 2009. Impressed by Solyndra’s promise of a better future through their use of high-quality solar panels, the United States Department of Energy, under the Obama administration, agreed to loan the company $535 million “to create so-called ‘green jobs,’ which we were told were the key to the future economic growth” (Barone). This step towards cleaner energy ended up backfiring in 2011 as Solyndra suddenly declared bankruptcy, resulting in a multi-million dollar loss of federal money as well as damage to the previously untainted presidency of Barack Obama.
According to the information available on the still-accessible Solyndra website, their process of equipping buildings with the advantage of solar energy seems flawless and promising, leaving little doubt as to why the Obama administration jumped at the chance to benefit their
work. Each Solyndra system is made up of “cylindrical copper indium gallium diselenide (CIGS modules) and thin-film technology”, has the ability to withstand 130 mph winds, comes with a 25-year warranty, and costs less in time and money to install than any other commercialized solar construction (solyndra.com). Mesmerized by the innovation presented by this up-and-coming solar production company, the Department of Energy included the steep loan in their 2009 stimulus package; however, the DOE and private investors such as Oklahoman George Kaiser were unaware of the fact that the company was sliding towards bankruptcy and would be unable to ever pay back the federal government. Wary of Solyndra’s financial issues, PriceWaterhouseCoopers funded an audit of the company in 2010 and discovered that Solyndra “had accumulated losses of $558 million its five years of existence” (Barone). The full impact of the company’s financial turmoil became nationwide on August 31, 2011, as Solyndra filed for bankruptcy, “putting 1,100 out of work and potentially leaving taxpayers on the hook for $527 million” (Higgins). This news resulted in a breakdown of the “green jobs” plan devised by the federal government, as well as a scandal upon the Obama administration for its compliance to hand over the American people’s money to a failing firm.
Following the eruption of the Solyndra scandal, the Republican party jumped at the chance to criticize and blame President Obama, attacking his administration’s choices not only to
provide this huge loan to the jeopardized company, but also to ensure the return of the private investors’ loans before taxpayers’ money. Counteracting the Republican claims, Democrats made attempts to soften the blow of the Solyndra scandal by labeling it a “bipartisan scandal, noting that the Bush administration began the loan guarantee process [in January 2009]” (Higgins). Whether or not the Obama administration was aware of Solyndra’s financial troubles, the fact remains that the scandal has become an important factor in the consideration of his reelection this year.
Sources:
Barone, Michael. “Obama tainted by loan guarantees to solar firms.” Washington Examiner. 14 Sept. 2011. AEI. Web. 27 Feb. 2012.
Chinn, Paul. “President Obama Speaks at Solar Panel Manufacturing Facility.” Chicago Tribune. Photo. 18 Sept. 2011. Web. 28 Feb. 2012.
Energy BySolar. “Flat Roof Mount.” Photo. Web. 28 Feb. 2012.
Higgins, Sean. “Solyndra Scandal Continues To Grow For White House.” Investors Business Daily. 15 Sept. 2011: A01. Business Source Complete. Web. 27 Feb. 2012.
Reuters. “A sign at the entrance to the headquarters of bankrupt Solyndra LLC is shown in Fremont, Calif.” International Business Times. Photo. 24 Sept. 2011. Web. 28 Feb. 2012.
Solyndra. “Technology/Products.” Solyndra.com. Web. 27 Feb. 2012.