A major solar-power company in California has filed for Chapter 11 bankruptcy, reminding Americans of the hyped promises of “alternative energy.”
Sungevity, one of seven residential solar power companies under investigation for bilking taxpayers out of tax credits, agreed to the bankruptcy terms of handing over control to investors in exchange for $20 million to keep the company going.
In the Congressional investigation, it was discovered that the feds likely handed out about $25 billion in grants and tax cuts to these companies.
“The actions we have announced today will allow Sungevity to emerge as a stronger and more competitive company,” William Nettles, the company’s newly appointed Chief Administration Officer, said in a press statement. “With its market-leading software platform and its high quality employees who provide unwavering commitment to customers and exceptional service, Sungevity intends to be at the forefront of the industry as solar continues on its growth trajectory in the years ahead.”
The company laid off 350 employees last week and is supposed to begin selling their assets at the end of April.
Another solar company called Beamreach went bust in January after it received $3 million in Department of Energy funding in 2008. The major solar company SunEdison also recently declared bankruptcy. Roughly five major solar companies closed up shop in 2015, which follows the historic tendency that solar power companies tend to go bankrupt as soon as the subsidies are cut off.
Solar power companies are heavily supported by financial invective from the government. Most subsidies go to residential installations payments called net metering or a 30 percent federal tax credit. Previously, solar subsidies were so lucrative that solar-leasing companies installed rooftop systems, which run at minimum $10,000, at no upfront cost to the consumer. This naturally favors relatively wealthy consumers.
Alternative energy like solar and wind power receive far more grants and subsidies than coal oil and natural gas. Solar receives 326 times more subsidies and wind receives 69 times more than traditional energy sources.
Today, without government support, solar energy is not a viable resource, the MIT concluded.
H/T: Daily Caller