Obama's Jobs Speech Shows Clean Energy Isn't the "Cool Kid" Anymore

Jennifer Runyon
September 09, 2011 | 26 Comments

Well, one thing is for sure. Solyndra’s recent bankruptcy filing cemented the removal of the words “solar energy” from President Obama’s speech to Congress last night when he laid out his American Jobs Act. That is, if it was in there in the first place.

He didn’t even use the word “energy” in the speech although he did make mention of biofuels and fuel-efficient vehicles.

My guess is that the word “semiconductor” in this statement was supposed to say solar panels.

If we provide the right incentives, the right support — and if we make sure our trading partners play by the rules — we can be the ones to build everything from fuel-efficient cars to advanced biofuels to semiconductors that we sell all around the world. That’s how America can be number one again. And that’s how America will be number one again.

What he talked a lot about was how he was going to boost the America economy through tax relief, infrastructure investment and assistance for the long-term unemployed.

While more specific details of the American Jobs Act remain a mystery, some news outlets are reporting that part of the plan involves paying for the job growth measures through the repeal of oil and gas tax incentives. We’ll see how that works out.

And whether or not the deal will go through (many organizations are predicting that it won’t), it’s sad to me that the man that trumpeted a clean energy economy so wholeheartedly, quickly abandoned it for fear of political backlash.

Because the truth is that solar energy is creating jobs. Next month The Solar Foundation will release its second National Solar Jobs Census, which is expected to reveal that the industry employs 100,000 American workers, up from 93,000 last year. We’ll be sure to get the scoop at Solar Power International when the census comes out.

Solar Fred blogged this week on RenewableEnergyWorld.com that “After Solyndra and Evergreen…We’re Still Here, Yo!” He reminded us in the post that:

Solyndra and Evergreen have simply joined the club of pharmaceuticals, oil and gas companies, coal plants, and ethanol plants that have received some type of government support and failed. And let's not forget nuclear power plants that perpetually go over budget, requiring never-ending government support. Our government picks winners all the time, but sometimes the horse doesn't even show.

He asked for solar companies to leave their names in the comments section to show just how many companies are in the industry. If you have a solar company and you haven’t done it yet, please do so here.

In the end, relating to the speech, I was very encouraged to hear Obama get tough with Congress. I think he said, “You should pass this” 17 times or something. But as someone who works in the renewable energy industry, I couldn’t help but feel like the one everyone all of the sudden decides is the “out kid” in school.

Government investment in renewables will continue. Recent announcements of renewable energy funding touch on all clean energy technologies and all stages of development. It’s still a winning plan and I believe the U.S. government stands behind it.

I just wish they’d sit next to me, too.

The information and views expressed in this blog post are solely those of the author and not necessarily those of RenewableEnergyWorld.com or the companies that advertise on this Web site and other publications. This blog was posted directly by the author and was not reviewed for accuracy, spelling or grammar.

26 Comments

ANONYMOUS
September 19, 2011

Does this tactic surprise anyone who knows this country does not want solar or any "free" energy. They do not want to lose the control they have on their sheep.
They know we will pay whatever it takes to provide for our families and they will bleed us dry, that the rich get richer.

Pay some attention to how the FED has robbed us blind for decades upon decards. They legally print conterfeit money and give trillions they never account for, to whomever they want.
A bigger deal was made out of this mere pitance compared to the clever Federal Reserve, who answers to nobody,NOT EVEN THE PRESIDENT. Not that the present one would do anything about it, nor the people he answers to.
We are in for a bumby ride, so keep your eyes wide open, study and know I speak the truth.

I for one smell a rat, and as usual it's a plan to discourage any notion we may of freeing ourselves from their political grasp.
Wake up people: Most of our controllers have all the money they could ever spend. We know what is sought next--Power. What better way to get power than to control our energy needs. Just what we happen to crave and need after food,clothing and shelter.

Hey, they are clever enough to spout how they love solar. Such crap! They love money and power.
We are a nation of truly wonderful people. It is just too bad that the crooks are in control

Is anyone surprised that China leads us far and away where solar is concerned? They already control their people, so what does it matter?
One day the Big Shots will answer to a Holy God.

Peter Bromley
September 15, 2011

Back to the original story, above. I understand the sentiments expressed, but renewables have a solid future regardless of what a harried politician may say in a speech before a jittery, argumentative, and ideologically divided government.

Obama has a way of couching his language to maintain a modicum of civility. Meanwhile, as you may know, the US Department of Energy, under the leadership of Steven Chu, is offering huge incentives to renewable energy research and development. So much in fact, that it might be a good idea to maintain a low profile about it, lest a tea party hound dog starts howling about it.

Greg Smith
September 14, 2011

New comment notification - /off -

Greg Smith
September 14, 2011

Got it. Never gonna happen.

Greg Smith
September 14, 2011

Gumby, whether you realize it or not, evnergy conservation is a business. The DOE 40-40-40 plan is an indication that it is both necessary and profitable to conserve energy.

I think there is a little more to our unemployment problem than the lack of energy conservation but I agree that conservation is a good idea. However, the reality is that energy conservationists have been crowing about this for decades and Americans consume now more than ever. I agree that we should promote both energy production and conservation but the production seems to be low hanging fruit in the eyes of most.

What we do now is not enough - recycling (a joke in most places), forcing people to change lightbulbs etc. - and it will be an easier battle to get renewables accepted as an alternative source of energy than to convince Americans to become more energy concious.

Damon Doelger
September 14, 2011

To add to your list of companies, SiC Processing recycles slurry used in the cutting of silicon ingot into wafers. The only government support we've received was a property tax abatement available to any company that creates jobs in region of Portland where we setup shop. We hope to see US manufacturing continue, but it's a tough market with our customers competing against the Chinese government. Headquartered in Germany, we've seen directly how the solar business has generated significant manufacturing jobs when done properly, and no entities forecasting the future market doubt that the US will be a huge market in the next years. Let's support our manufacturers because to put it simply the product will be installed here whether we build it or not. Finally, it ins't labor costs making the difference for Asian manufacturing; it's government support.

John Cotten
September 14, 2011

We are a new American made solar panel manufacturer located in Danville, KY. Alternative Energies Kentucky, LLC. While some companies are heavily subsidized, we are not. We have received a small training reimbursement credit from the state. We are no different than any other manufacturer in any state, in any area of manufacturing with this incentive. We are working hard to build a solid company, on solid principals. If you are interseted in American made PVP modules, email me jcotten@aeky.net. We are americans who know how to work hard, and build a quality product, we are very proud of that fact; Great Article. We are here and plan on being here for a long time.

chris eddy
September 14, 2011

It'd be nice to read a real analysis of Solyndra instead of the whining about backlash. Cylindrical cells were a dubious idea from the start (and I said so at the time), the company was very immature for a $535m production loan, they'd had to pull their IPO because they weren't hitting their numbers, their auditor had warned of possible BK, the political connections are troubling, the FBI sees possible criminal activity, etc., etc.

Government loan guarantees will sometimes experience loss, but there's a huge difference between a legitimate company like Evergreen who'd been around for years and had recently been profitable and a potential scam with huge red flags like Solyndra. The Solyndra debacle shows how things can go horribly awry when politicians decide winners and losers. Instead of trying to sweep it all under the rug how about some real analysis to help us learn from our mistakes?

Donald Mayfield
September 13, 2011

Here something we PC owners can do to help:

http://cleanenergy.harvard.edu/

Michael Keller
September 13, 2011

GM and Chrysler should not have received taxpayer money. They should have been allowed to go bankrupt and restructure through normal means - these firms actually did go bankrupt anyway, but Obama quite clearly paid-off the auto worker unions who gave him millions of dollars in campaign contributions.

Like it or not, solar cells are a commodity. Those who have the lowest production costs will win, provided such power is competitive. The end user can decide what he is willing to pay for power, and that includes just buying it from the local utility.

A bubble is over-inflated hype.

Greg Smith
September 13, 2011

Keller, it is hard to beat cheap and inferior products the industry is competing against from China. People want these systems to last 20+ years and when these fly-by-night companies peddle thier products to the person only interested in $/watt the whole industry loses.

All the industry asks for is a meager subsidy, compared to the oil, nuclear and coal companies, so that we can make it more affordable for everyone to own.

Solar is not a deflating bubble unless one only looks at the over inflated hype made by a few companies who did not have the business model to survive. Happens all the time, but solar is getting a bad rap because Obama gave Solyndra millions of dollars and failed. GM and Chrysler were in a similar situation last year and we have yet to see the fall out from that bargain.

Michael Keller
September 13, 2011

Seems to me, renewable energy is more or less a bubble that is in the process of deflating, as evidenced by the increasing numbers of bankruptcies.

A hard-nosed analysis shows that the likelihood of earning a profit is very small absent large government subsidies. Further, there is no pressing need to build power plants of any kind, as electrical demand is decreasing or flat because the economy is in a prolonged state of recession. Also, the ability of renewable energy to meaningfully impact the alleged global warming problem is essentially nil.

I think a better strategic approach for the renewable energy industry is to beat the competition on price, which is where I believe the industry must inevitably go. Clinging to the hope that the government will be the industry's savior is a doomed and Faustian bargain.

Donald Mayfield
September 13, 2011

Agrees with John and Sam. I would bet 100,000 jobs is not a lot when shown in a pie chart of energy jobs. Does anyone have all the numbers?

That said, I am impressed at how fast the renewable industries are growing.

Greg Smith
September 13, 2011

David W hit on something that has really boosted the solar industry in Canada, a country with half the amount of solar irradiation than California.

A carbon copy (no pun intended) of Canada's program- offering incentives to people installing solar, but only if they meet local content requirements- would work very well in the US. Canada requires 60% local content! With a 60% content requirement the US could boost its solar programs, create jobs and move one step closer to reducing our dependence on fossil fuels.

Solar energy could be the cool kid on the block, but apparently cool, combined with hope and change, doesn't do much for us.

Alexis Greene
September 13, 2011

Excellent blog, Jennifer. It will be too bad if the fall-out from these corporate failures discourages solar panel manufacturers from moving into the Northeast. Here, where Community Environmental Center installs domestic solar hot water systems, we always have the additional cost of shipping, whether from California, Germany, Canada or China. And as for Chinese imports, the US system designers with whom we work are telling us to beware of the quality of the Chinese solar panels.
Alexis Greene, Community Environmental Center

Jay Lindberg
September 13, 2011

Tax payers are subsidizing this industry. It made no sense not to require those subsidies to be tied to products manufactured in America. But that is what we did and that is why these companies went BK. We need to start protecting domestic industry like every other industrial nation on this planet.

One other thing, I have no doubt that Obama will sell out our renewable energy industry if he thinks it will get him re-elected. No doubt at all. Frankly, I think he needs to come out of the closet and change parties. Our half white messiah should admit the other half is Republican.

Sam Beal
September 13, 2011

John is spot on. tax carbon (CO2 emissions). This issue is how. Cap & Trade will never fly - too much red tape, too much GOP opposition. States should take the lead in taxing CO2 where it is easy to measure: non-renewable electricity generation and fuel. Use the $ on FIT programs.

Sam Beal, PhD
sambeal.com

John Howley
September 12, 2011

Government loans and loan guarantees for individual companies are not the best or most sustainable ways to promote green energy. The upsides are limited. If the individual company succeeds, the loans get repaid and the company has an incentive to keep any technological developments to itself to preserve its competitive advantage. And if the company fails, the money is lost. The better way to spend government money is on basic research that will benefit entire industries. But even that will not create sustainable industries unless we correct basic macroeconomic policies. Right now, one of the primary competitive advantages of solar, wind, and other forms of clean energy is valued at close to ZERO by markets, because there is no price on pollution. If we put a price on pollution and include it in the price of oil, coal and other dirty fuels, then the benefits of clean energy would have economic value.

John Howley
http://www.twitter.com/HowleyGreen

Jim Case
September 10, 2011

You go David, It is time for the American people to stand up and say " we are still the best and if you want the best, get your wallet out" We could have 200,000 jobs in this country if we kept it at home!! Problem is that China is holding the mortage on the USA. Every politician in the US IS SCARED STUPID. As they should be. They do not have to wage war to take us down, they can wait us out and buy us us for 10 cents on the dollar.

ANONYMOUS
September 10, 2011

Its no secret that the US lacks a substantive energy policy. Any US policy that does exist propagates a 100 year old modus operandi of supporting massive R&D explorative behavior for fossil fuels and a taxation structure that allows US companies to avoid paying their dues on domestic soil where they sell their products. Overseas countries (particularly China) have recognized that there will be a massive shift in the way we think about and consume energy in the coming years, and have subsequently developed policies to provide extremely low cost debt to promote domestic manufacturing, job creation, and a middle class. And where demand falters, those countries (namely China, Spain, Italy and Germany) have even created a demand source with country-specific feed in tariffs. Further, China does not have the same safety standards, living wages, or unions that the US has self-imposed and produce goods at an extremely lower cost than what can be achieved here in the US. To make matters worse, there are no "real" import tariffs on these products coming from a country who has manipulated their currency for over a decade. Where is the surprise?

If you contemplate a company like Solyndra - whose products were innovative, representative of what the US does best (engineering, ideas, architecture, innovation, science), and who committed to US based manufacturing - and you scratch beneath the surface of the media frenzy, its not a failure of cleantech or renewable energy, its a failure of our leaders to create a US economy with a level playing ground vis a vis the rest of the developing world and compete with a global infrastructure of fossil based fuel incumbents who will not easily relinquish their vanquishing strangle hold on the globe.

Its time we recognize the need, the opportunity and the mandate to create the next generation of energy products and services.... right here in the heart of the United States of America. Challenge your thoughts on the matter.

David Weinberg
September 10, 2011

If the 30% cash grant/credit had been reserved for panels made in America, along with the MA SREC being reserved for panels made in MA...Evergreen would still be here and humming along nicely.

Can't do it? Will piss off the Chinese and start a trade war? It is exactly what Ontario did with their feed-in tariff and last time I checked, China and Canada were not at war.

You want to put Chinese made panels on your building? Great - do it. Just don't look for subsidies from the American taxpayer.

100,000 jobs in solar? But they are all project contractors who live and die with government subsidies. With 15-20 million people unemployed, and many more underemployed, not to mention a huge Federal deficit...money should be used to create sustainable employment for the largest number of people possible.

Rich Hessler
September 9, 2011

A side note on the lack of common sense in regards to creating jobs in America.

The most recent Martin Luther King Jr memorial waste of money was designed and manufactured in China.

Jim Case
September 9, 2011

Good grief, if the Federal Government would stop throwing money at the coal, and oil companies, take nuc's completly off the table, and direct that money to renewables we could work our selves out of this mess in no time. If the Government had invested half of the money they waisted in 2 stupid war we would already be on a good footing. Where in the hell has the common sense in governing gone?? The one thing the American people know how to do is build. Lets build!! Not send it all overseas. Protectionist? Maybe it is time that we started to protect our own back side, the rest of the world is not even going to think about helping us with anything.

Jim Cummings
September 9, 2011

Someone, sometime, is going to step up and lead America into the economic boom of its clean-energy future, hopefully in time to maintain at least a place at the table where the global leaders sit. Will it have to be a mythical moderate Republican, a Nixon-goes-to-China figure? The mythical progressive Dem (as well as the actual moderate Dem) isn't getting the country's center to move on this. I love the way you kept it light here, with the 'cool kid' framing, but it really is discouraging that he has to under-sell what is likely to be our only road forward.

Perhaps he really DOES have to play this little game, thanks to the likely media/GOP response if he mentioned the word 'solar' this week. If only we had a semi-rational political/media world to work with....

Elisa Wood
September 9, 2011

Great blog and good to see those solar employment numbers put forward. Because of Solyndra and Evergreen there appears to be a misconception developing in the mainstream -- a lack of awareness about how quickly the industry has expanded.

Tor 'Solar Fred' Valenza
September 9, 2011

Great observation, Jenn. I noted the same thing, him not saying 'solar' like he usually does.

And thanks for the mention. Over the last year, I've talked to a lot of successful solar entrepreneurs, and we're definitely still growing as an industry. Interestingly, several said that, even though it's not fair compared to fossil energy industries, somehow solar is going to have to compete and succeed without government subsidies. In the long run, I'm confident we will. In the short run... there are going to be challenges, but I strongly believe we're on our way to more jobs and more solar success, with or without direct Obama support.

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Jennifer Runyon

Jennifer Runyon is managing editor of RenewableEnergyWorld.com coordinating, writing and/or editing columns, features, news stories and blogs for the publications. She also serves as conference chair of Solar Power-Gen Conference and Exhibition...