WASHINGTON – The Energy Department on Friday approved four more solar energy loan guarantees worth nearly $5 billion, hours before a controversial loan program was due to expire.

Meanwhile, the Justice Department moved to take away control of a failed solar panel maker from its management and transfer it to a court-appointed trustee.

Energy Secretary Steven Chu said the department completed deals on four projects, including two that were sold late this week by Arizona-based First Solar Inc., a major solar manufacturer that had been seeking three federal loan guarantees for projects in California.

The loans were approved under the same program that paid for a $528 million loan to Solyndra LLC, a now-bankrupt solar panel maker that has become a symbol for critics of the Obama administration’s green energy program.

Two other solar loan guarantees worth about $1.1 billion were announced earlier this week, as the Obama administration pushed forward with the loan program despite pleas from GOP critics to halt it to avoid another Solyndra-like debacle.

Even as the loan program continued, the Justice Department took steps Friday to take away control of Solyndra from its management and transfer it to a court-appointed trustee.

In a filing with the U.S. Bankruptcy Court in Delaware, the Justice Department said it was seeking the appointment of a trustee because top Solyndra executives refused to answer questions about its finances and operations. Solyndra CEO Brian Harrison and financial chief W.G. Stover refused to testify before Congress last week, citing their Fifth Amendment protections against self-incrimination.

Chu said the solar projects, which could cost taxpayers as much as $6 billion, should help the United States as it competes with China and other countries to develop renewable energy.

The deals announced Friday include a $1.5 billion loan guarantee to Florida-based NextEra Energy and other investors that bought a planned 550-megawatt solar farm on federal land in Southern California from First Solar, as well as $646 million to Illinois-based Exelon Corp. for a 230-megawatt solar plant near Los Angeles.

Next Era Energy Resources and GE Energy Financial Services bought the Desert Sunlight project from First Solar, while Exelon bought the Antelope Valley project.

A third project, worth $1.2 billion, will help San Jose-based SunPower Corp. build a 250-megawatt solar plant in California, while $1.4 billion will go San Francisco-based Prologis Inc. to support installation of about 750 solar rooftop panels in 28 states.

 

Copy the Story Link