With the collapse of solar manufacturer Solyndra in the headlines, the
demise of the U.S. solar industry is nearly complete.
Let’s
face it, the largely justified but calculated partisan attacks on the
Obama administration’s funding of the California solar startup, along
with the domestic industry’s persistent inability to compete with
heavily subsidized Chinese manufacturers, likely kills the chances of
nurturing a domestic solar industry.
(Disclaimer required
to maintain my poetic license: Sorry, this isn’t really about Steve
Jobs at all, although I do reference Apple in the final paragraph. But
it seemed like a great and timely title.)
Whether Solyndra
was the poster child for government support of green technology or just
another example of government waste and big donator cronyism is not
what I want to discuss. I blame politicians on both side of the aisle
and don’t see any white knight in all this mess. What I’m worried about
is the state of the US economy, manufacturing, and ability to create
well paid jobs for people that don’t have college degrees. There is only
one source of well paid jobs for average workers, and that is
manufacturing. Say goodbye to the solar industry. Green jobs? Where?
In
my view, the collapse of a domestic solar industry is just another
chapter in the on-going story that has been the undercurrent of the U.S.
economy since the ’70’s.
Further, U.S. companies involved
in producing materials and other solar components are voting with their
feet. Big suppliers like Applied Materials and smaller startups such as
Evergreen Solar have shifted operations to China. Massachusetts-based
Evergreen Solar laid-off 800 workers last winter and shifted production
to a joint venture in China. Evergreen’s excuse? More Chinese government
support.
Solyndra’s collapse after receiving a $535
million government loan, which taxpayers will now have to pick up, will
likely undermine economic stimulus efforts designed to boost the
domestic solar industry. Smaller U.S. operators will remain, but most
manufacturing — and jobs — are gone to China.
U.S. oil companies are laughing all the way to the bank.
The
House Energy and Commerce Committee appears to have the goods on the
Solyndra loan, including a raft of White House e-mails the panel leaked
to the Washington Post. That newspaper appears to have at least done
some leg work, reporting that Solyndra’s biggest investors were funds
controlled by billionaire and Obama campaign fundraiser George Kaiser.
Kaiser has denied any undue political influence in gaining approval of
Solydra’s government loan. Hmmm. Undue influence or not, there is a big
public trough just ready for the feeding. I know that "Occupy Wall
Street" is principally nonpartisan, but I also know the Democrats are
itching to get their arms around it and have their own "Tea Party." That
is the problem with politics. It is always more important to win
elections than to actually fix any of these problems. But I digress!
The
main culprit in Solar-gate is Solyndra CEO Brian Harrison, who failed
to inform even committee Democrats of his company’s “perilous condition”
prior to its collapse. As Harrison exited by the back door, the feds
were carrying boxes of documents out the front entrance as most of the
Bay Area’s TV stations captured the proceedings.
The
Republican leadership of the House energy panel is and always has been
hostile towards solar energy development. It also views the Obama
administration’s economic stimulus efforts as picking “winners and
losers.” That tired debate is irrelevant as American manufacturing
continues its precipitous decline.
(A sliver of hope
remains for the domestic industry: Despite all the hoopla over
Solyndra’s collapse, the Energy Department is continuing to invest in
promising energy technologies, including a $150 million loan guarantee
to 1366 Technologies. This company has found a way to use bulk silicon
to make wafers used in solar cells. The process technology is close to
commercialization. DoE is betting the advance can lower the cost of
producing solar cells. “It’s a process innovation, not a product
innovation,” a DoE official told the New York Times. “They can produce
silicon wafers with much less material and many fewer steps.”)
There
are also plans to install solar power at all DoD facilities. However, I
wouldn’t be surprised to see that work sent to China. Did you know that
several bridge rebuilding projects now underway in the U.S. are being
done by Chinese companies? I just don’t know what is going on any more.
If
the American solar energy industry is in fact on its death bed, where
can we still lead in energy R&D and manufacturing? I would argue
that the best place is battery technology. Several U.S. companies and a
growing list of startups are either squeezing more energy density out of
lithium-ion batteries or targeting new combinations like lithium air.
Venture capitalists are pouring a sizable amount of money into these
companies, many of which are spin-offs from university labs. Despite all
the gloom, there are still plenty of good ideas emerging from these
technology incubators.
The solar industry has picked up
and moved to China. Let’s mourn, then organize, and refocus our efforts
on other energy technologies like advanced batteries — and begin again
to restore U.S. manufacturing and energy independence. I don’t expect
the politicians to do this. They are too busy trying to get elected and
re-elected. Maybe that’s why Apple never sought out government
subsidies. (See! This article does include a Steve Jobs reference.)
To
tell you the truth, I don’t know what the answer is. Sadly, when I
retired, no-one got my job. It was spread out to five other workers and
basically just disappeared from "pay roll." On the other hand, never
count American innovation out, but I also recommend a lot of praying.
People are out of work and out of money. My recommendation is to get a
loan — from the government, of course — and go back to school. Maybe
you should study Chinese.
Originally written Oct. 11, 2011.
Sunday, September 16, 2012
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment