Solar industry: "Show us the money"

Solar energy companies are requesting that the Obama administration reinstate loans promised to them that had recently been removed from a bill in Congress. In order to help secure money for a $26.1 billion education and Medicaid bill, Congress removed a $1.5 billion loan to solar energy companies that was part of an economic stimulus package. Although solar energy officials have sent letters to President Obama and House Speaker Nancy Pelosi, Obama will most likely sign the bill in its current form. While the cut may be only temporary—the loans may be reinstated in September—corporate leaders warn that their delay could have a devastating effect on the solar energy industry, sending it into a “tailspin.”

This development is the latest in a series of disputes between Washington and the renewable energy industry, whose representative feel they have been neglected despite the Obama administration’s claims to green energy commitment. Last summer, solar energy companies had been promised $2 billion in the “Cash for Clunkers” bill, which was later removed. The House of Representatives has since agreed to ensure that those funds are restored, but the Senate has not.

The Senate’s action means that many planned large-scale solar farms cannot be constructed, although the Obama administration has secured loans for a small number of these projects. Last week, the administration announced that loans would be given to two solar energy companies: one that will construct a 280 megawatt solar farm in Arizona, and another that will set up solar panel manufacturing plants in Colorado and Indiana.

Speaker Pelosi and other democratic leaders have stated that they will restore these funds, which were part of a total of $6 billion in loans to be used for renewable energy. Currently, only $2.5 billion of these loans are still guaranteed, and industry representatives say that this is not enough to finance the planned $60 billion in projects that they wish to undertake. These representatives also warn that if the Department of Energy is not able to deliver on loan guarantees, dozens of renewable energy programs would be at risk.