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Marc Morano, ClimateDepot.com, on a new solar panel company receiving a $197 million loan guarantee from the same energy department program that backe...
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So here we got -- -- solar panels start -- called solo power is receiving nearly 200 million dollar government loan guarantee.
That's from you -- me by the way believe it or not the money comes from the same Energy Department program that backed the now bankrupt Solyndra.
What guarantee do taxpayers have that solar power won't be as Solyndra -- joining me now is mark -- from -- -- dot com.
Mark it is great to have you back on the show and you know what makes me really nervous about this besides one -- Is that this is a company that's going out there to make solar panels they're making it very thin solar panels on you know that are easier to install and use the we have a production glad.
Of these in the world right now they're being made very efficiently in Asia.
As a result the prices declined 30% in the past year and -- expect demand to increase 8% over the next year.
So if I were going into business right now this is not the business.
I would choose what do you expect no it sure and thank you look over the last three years -- 75% drop in solar the cost of solar panels.
And you mentioned Asia in China right now Suntech Power -- the largest solar manufacturer in the world.
Is it threatening to be delisted for the New York Stock Exchange their stock went from ninety dollars a share in 2008.
Down to a dollar a share today so even in Asia where it's done.
Probably cheaper and more efficiently they're having major problems in Germany where half the world's solar is.
There's not a single company in the black at a moment they're going to the death spiral so given that worldwide market.
Here comes the federal government and this is the classic adage the more the plans fail the more the planners plan.
Have come up to add back to put in 200 million dollars and it doesn't stop there because the city of Portland and the state of -- Is gonna -- I think -- that of the more than fifty million dollars additional money to the same company.
So mark what's distressing to me because if I was a business owner I mean whether that's coming it doesn't matter for talking about -- -- -- is making solar panels or -- Just when you look at the market and you look at the demand of the market and you look at the supply.
You see this is not in -- business that it makes sense to go into right now so why would they be doing this we did they feel like the government subsidy.
It -- you know is gonna make it profitable so why are they going into this hasn't.
Well the reason they went through that keep in mind President Obama has the science -- -- and and John Holdren who said one of the houses of a free society which cheap energy.
Secretary Chu has been instrumental in -- and getting the solar company money.
What their goal was -- president Obama's state it was the make electricity rates skyrocket.
It only makes even conceivable sense if electricity and energy is it's in the stratosphere much more expensive.
And then solar only begins to make sense so that was -- original plan.
That didn't come through because congress failed to pass a climate bill which would -- helped.
Although President Obama -- -- canned to make energy more difficult when it comes to coal in the United States and other forms of drilling and and things like that.
So what's happened is.
It's an ideology that's driving this policy they want renewable energy.
It's based on fear of man -- global warming -- trying to say we need to get off carbon based energy we need to do it fast yeah this is their ideology and that's why they're doing stuff that makes no sense the federal government as a venture capitalist.
Makes no -- That's advanced capitalist you know their record is not is not great -- before companies have gotten money so far to universal -- and abound solar which are both gone bankrupt.
The other -- this solar power that we're talking about right now that's getting.
Another loan it is in Diego 187 million dollars is in business but is heading down this -- -- I don't see how can possibly be successful.
You know and and the other one is this thirteen 66 technologies -- what you know about that when they apparently are lined up for 150 million dollar loan from.
And you and me.
Yes and obviously to watch them here that we found and that every single instance Somalis.
We're looking at when that the federal -- turns off the companies go belly up for a few years ago all we heard about -- how green jobs are doing the -- and renewable energy sector is booming.
Because the federal government had pumped in forty billion dollars -- a few short years you can create the illusion of prosperity the second that money is pulled the savings happening in China say things happening in Europe once the money is pulled the jobs go belly up the company the 50% bankruptcy rate is astounding given that the money started -- flow on a few years ago.
I mean these are companies that cannot make it and again we're producing.
Last -- barely over 110 of 1% of energy and the United States.
And and they in the US GAAP -- win this 3% it's always not even making it at 1% which is by margins up here we.
Ought to go in and that is not even the point the point is that we are broke in this country we are -- sixteen trillion dollars in the hall.
We can not afford to just roll away this money.
On this company that can that cannot possibly make it it's just stupid all right thank you coming on -- we appreciate your time out of your comebacks in.
