Solyndra was a solar energy company that designed and manufactured photovoltaic panels to be installed on rooftops and generate green energy from the sun. The company was founded in 2005 and first applied for government funding under the Bush administration in 2006. Eventually, a government loan was awarded under the Obama administration in 2009. The controversy began in March of 2010 when auditors raised concerns about whether solyndra would be able to continue operating. Obama was warned about his forthcoming endorsement of Solyndra but decided to support it anyways and use it as a model for clean technology and creation of jobs. * months later the executives of Solyndra learn that the company is out of money and admit to Obama’s administration that they may have to liquidate the company. One month later the Department of Energy (DOE) helps Solyndra to refinance and investors add an additional $75 million. This public financial support proved to be a mistake when Solyndra was forced to shut down in August of 2011, only 6 months after the public investment. Obviously this entire scandal reflected poorly on the Obama administration.
“Everyone agrees that the world needs safe, clean and affordable energy” -Paul Nahi CEO of Enphase Energy
In his article in Forbes magazine Nahi explains that as the CEO of a solar technology company he wants an abundance of clean energy more than anyone, but in order to accomplish that goal the renewable energy industry needs financial independence from government. The suggestion may seem strange considering that between 1994 and 2009 the U.S. oil industry received a total of nearly $450 Billion dollars in subsidies compared to the renewable energy industry, which recieved less than $6 Billion in the same time period. Eventually, companies receiving government subsidies become too powerful and use that power to perpetuate government financial support. Nahi argues that healthy companies have sound business models, while unhealthy companies depend too heavily on subsidies and slow the growth of the industry. A well designed product, “meets the needs of the consumer…(and) will find success in a market economy. Solar energy is cost effective and in fact cheaper than oil if we remove direct and indirect government subsidies.
References:
http://www.washingtonpost.com/wp-srv/special/politics/solyndra-scandal-timeline/
http://abcnews.go.com/blogs/politics/2012/07/obama-fundraises-with-players-in-solyndra-scandal/
http://www.forbes.com/sites/ciocentral/2013/02/14/government-subsidies-silent-killer-of-renewable-energy/