Solyndra’s failure shouldn’t deter government investment in solar power

The Washington Post

October 30, 2011

By Sherri Pittman

Throughout our nation’s history, the federal government has played a critical role in scaling new industries and new technologies. From defense to computers and railroads to aviation, government investment has created thriving industries and good careers for generations of Americans.

Today, clean energy technology, including solar, can be one of our nation’s next growth industries if we continue to make sustainable businesses an economic priority.

Despite the collapse of solar panel manufacturer Solyndra, our nation’s early investments in clean energy have begun to pay off. The U.S. solar industry grew 69 percent in 12 months representing the fastest growing industry in the nation. More than 100,000 Americans in all 50 states are employed by solar, more than the coal mining or the U.S. steel production sectors, according to the Solar Foundation.

But just as this industry is beginning to scale, we are seeing a timidity to support this fledgling industry because of the high-profile failure of one company, Solyndra. While we can undoubtedly learn lessons from Solyndra’s bankruptcy, our nation and our policy leaders should see Solyndra’s demise for what it is — a reminder that some companies inevitably fail in growing industries.

From my perspective, I left a 20-year marketing career in the retail apparel industry for a new career with Sungevity, a residential solar company. Like me, many members of our staff transitioned from well-established industries including real estate, retail and finance to bring their experience and skills to help grow this industry and our company. As a result, Sungevity has experienced significant growth, expanding from three Western states — Arizona, California and Colorado — to include Delaware, Maryland, New Jersey, New York and Pennsylvania in our service territory, and multiplying sales by 10 times over the past year. It is this kind of growth and continued momentum that have brought strategic investments from Fortune 50 companies like Lowe’s to our business.

Sungevity’s success story is attributed in part to the government’s role in fostering a supportive climate for sustainable businesses in growth industries. American Sustainable Business Council, a leading advocate for sustainable economic development, argues that a framework of federal policies, investment programs, government loans and tax incentives is often needed to help new businesses grow, create jobs and strengthen American competitiveness.

The semiconductor industry in Northern California illustrates how successful government policies work to establish an effective business climate. During the first 10 years of the semiconductor industry’s formation, the U.S. Department of Defense provided more than half the total revenue to the industry.

By backing this young industry, the government led the way for semiconductor technology to become the industry it is now, and for American companies to take an early lead. While many Americans may not be familiar with the semiconductor industry, most of us know where the industry calls home — Silicon Valley. Silicon Valley would not be the same without those early policy investments.

Our nation’s track record demonstrates incredible success when we support emerging industries. Sungevity’s growing momentum illustrates that individual companies with smart business models can succeed.

Solyndra’s lesson shows us that individual failures should not cloud our industry’s overwhelming success nor weaken our nation’s resolve to support growing industries. Rather, the federal government should build on its record of success and continue investing in the sustainable businesses of the 21st century.

Sherri Pittman is vice president of relationship marketing at Sungevity in Oakland, Calif.

http://www.washingtonpost.com/business/capitalbusiness/solyndras-failure-shouldnt-deter-government-investment-in-solar-power/2011/10/26/gIQA2S5BWM_story.html

Focus on the Solyndra default distracts from the benefits of solar

The Hill's Congress Blog
10/19/11

By Thomas Alston, solar outreach and policy coordinator for U.S. Rep. Gabrielle Giffords of Arizona 

There is a segment of the U.S. economy that employs more than 100,000 people – and during the past year, employment in that segment grew by more than 6.8 percent.

Compare that to the 0.7 percent growth in the economy as a whole and this is clearly a bright spot in the still-struggling American economy.

That bright spot is the U.S. solar industry. And despite some well-publicized glitches, solar is one of the fastest-growing industries in the nation – and poised to continue growing and supplying more clean power to millions of Americans.

The recent grilling of Solyndra executives before the House Energy and Commerce Committee was a headline-making affair – but it did little to address the real issue: the need to curb America’s dangerous addiction to foreign oil while investing in domestic energy.

What’s been lost in the fixation on Solyndra is the very real progress that the growing solar industry has made in addressing these problems. And it’s happening here in sunny Arizona.

Congresswoman Gabrielle Giffords (D-Ariz.) is a member of the House Committee on Science, Space and Technology and one of the most passionate supporters of solar energy in Congress. She played a key role in obtaining a $1.45 billion federal loan guarantee that enabled construction of Arizona’s largest solar power-generation plants near Gila Bend.

The congresswoman also had solar panels installed on her home in Tucson. She long has recognized the job creation potential associated with solar development. This potential is now coming to fruition.

Just a few weeks ago, Tempe-based First Solar celebrated the development of a new solar manufacturing plant in Mesa. This facility is the size of six Super Walmarts and will create more than 600 jobs.

Why did First Solar choose Arizona? In part, it’s because of the local demand for tens of thousands of solar panels from this factory that will be used by the Agua Fria solar generation facility near Yuma.

This project will be one of the largest of its kind in the world. It is employing hundreds of construction workers – a workforce that has been hit disproportionately hard by the recession. And it is made possible by the same Department of Energy loan guarantee as those made to Solyndra.

Unlike Solyndra, the Agua Fria success story is the norm for these loan guarantee projects – and it isn’t alone. The Abengoa project near Gila Bend and Sempra Energy’s Mesquite project west of Phoenix also are supported by loan guarantees and will create a total of 2,400 jobs. The fact is that the loan guarantee program is creating real high-wage employment opportunities.

It also is important to remember that the Solyndra guarantee represented only a small percentage of the total loan guarantee portfolio. Focusing on one failure at the expense of the entire portfolio ignores the fact that the purpose of the loan guarantee program is for the federal government to buy down the risk inherent in innovative new industries to spur private investment.

Finally, because the federal government owns the assets of companies that default, the Office of Management and Budget expects taxpayers to recoup at least half – and perhaps much more – of the value of the Solyndra loan.

The backlash against the solar industry has not been confined to the federal level. Here in Arizona, there has been a fair amount of criticism aimed at state solar incentive programs.

A typical argument contends that supporting clean energy means “picking winners and losers.” This tired phrase often is code for, “Let’s not do anything.” Inaction is picking a winner, but that winner isn’t America and it’s not Arizona.

Making the most of a competitive advantage is not the same as randomly “picking winners.” Arizona has the land, electrical transmission infrastructure, educated workforce, world-class research institutions and, of course, sunlight needed to make this state not just a solar leader, but an energy leader.

Identifying and capitalizing on comparative advantages is something most governments do. Certainly, the Chinese government has figured it out. It has invested more than $25 billion in solar over the last year alone – and it is paying off.

Those who use a free market argument to call for an end to government support for solar and other clean energy sources should focus the same attention on the billions of tax dollars a year that subsidize old energy sources, such as coal and nuclear.

We have the sun and we have the technology. Now let’s have a fact-based discussion on what it will take to harness the near-limitless solar resource and pull our economy forward.

Thomas Alston is solar outreach and policy coordinator for U.S. Rep. Gabrielle Giffords of Arizona.

Source:
http://thehill.com/blogs/congress-blog/energy-a-environment/188555-focus-on-the-solyndra-default-distracts-from-the-benefits-of-solar