Thursday, September 8, 2011

If The Prospects Are So Good, Why is the Govt Making the Loans?

Typically, if somebody or some business has a good idea, they go to a bank, present their ideas, and get a loan.

Why is our government giving a loan to these two "green" businesses, then, instead of a bank? (Having said that, I'm glad that the US government is making loans to US companies, and not to companies in other countries!)

2 More Solar Companies Get U.S. Loan Backing
Undeterred by the bankruptcy filing of a California solar company that got $535 million in federal loan guarantees, the Energy Department is issuing two more large loan guarantees, albeit to companies that look like safer bets.

The department will announce Thursday that it has completed a $150 million loan guarantee to 1366 Technologies, a company with a new way to make the silicon wafers used in solar cells. The company, based in Lexington, Mass., is the star pupil of the department’s Advanced Research Projects Agency — Energy, or ARPA-E, which makes grants to entities with radical ideas with great potential value; 1366 appears well on the way to being the first of the project recipients to reach commercial application.

The company casts the wafers from molten silicon, cutting costs in half. The conventional method is to slice the wafers from a big block, turning half the silicon into dust. While Solyndra, the company that filed for bankruptcy, tried to sell a markedly different product, 1366 offers a commodity product made in a different way with lower production costs.

Jonathan M. Silver, the head of the Energy Department’s loan guarantee program, said, “It’s a process innovation, not a product innovation. They can produce silicon wafers with much less material and many fewer steps.”

The price at which 1366 will sell its product is not clear, but Mr. Silver said he expected the company to continue to drive down the market price of solar cells.

On Wednesday, the department announced a guarantee for 80 percent of a $344 million private loan to be taken out by SolarCity, which installs and owns rooftop solar systems and sells the electricity generated by them.

The company plans to operate up to 160,000 rooftop installations at military bases around the country, mostly on apartment buildings and houses. That would be a huge expansion of rooftop solar systems; there are nearly 160,000 residential and nonresidential installations in the United States today.

SolarCity said the plan would create about 750 construction jobs over five years. The company intends to employ veterans or relatives of active-duty personnel to do much of the work, at up to 124 military bases in 33 states. SolarCity said it would install 371 megawatts of generating capacity.




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My Schedule of Regular Posts:
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*Monday through Friday afternoon - List of topics Limbaugh discussed on his program that day
*Monday through Friday throughout the day - My posts on anything that I feel like talking about. At least one or two a day, sometimes more.
*Saturday through Sunday morning - An addition to my booklist of political books - covering Democrats, Republicans and other interested parties.

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