This is How Obama Just Boosted Solar Energy in the U.S.

The efforts (outlined in detail below) included upping the ante on the federal renewable energy loan program, and increasing the availability of PACE financing for residential homeowners who may need to make energy efficiency upgrades, such as solar.

Simultaneously, he openly chided fossil fuel industry interests, such as the oil baron Koch brothers, who have been fighting aggressively to combat any new climate legislation and progress being made in renewable energy.

President Obama suggested fossil fuel proponents were stuck in the past, saying, “This is about the past versus the future. America believes in the future.”

He also said the economics of renewable energy are becoming so compelling that, “...Solar isn’t just for the green crowd anymore, it’s for the green-eyeshade crowd too.”

The news is exciting on its own, but perhaps more so because of the President’s other recent big climate focused announcement of the Clean Power Plan, a White House commitment to reduce U.S. greenhouse gas emissions by requiring states to cut carbon by an average of 32 percent through a range of incentives.

These efforts should be very positive for the long term health of domestic solar industry, which experienced job growth in 2014 at 10x the rate of the larger U.S. economy.

Solar Loan Program is Actually Making Money

One aspect of the plan is to double-down so to speak on the government’s controversial loan program to boost investments in domestic renewable energy technologies.

The program helped innovative American companies, such as Tesla, achieve success by bridging the funding gap that often exists for entrepreneurs who need financing during periods of heavy investment.

The green arrow below shows the stage at which innovative, fast growth companies often need additional capital to fund commercial expansion and reserach and development.

President Obama outlined a commitment to increase the loan program by $1 billion to invest in innovative renewable technologies, such as solar and distributed energy systems, such as grid storage and battery technologies.

The loan program was infamous in the news because of Solyndra, the failed "thin film" solar PV manufacturer.

Solyndra received $536 billion in loans, which were ultimately lost, as part of the efforts to stimulate the U.S. economy during the 2009 recession through American Recovery and Reinvestment Act. Solyndra went bankrupt in

However, a little known 2014 report from the U.S. Department of Energy Loan Programs Office (LPO) shows that the loans made by the Obama administration, even including Solyndra’s epic failure, are a net positive in terms of cash.

The DoE’s $34.3 billion portfolio of investments in solar power, wind farms and other renewable energy projects has made a profit of $30 million, thanks to interest on its loans, when accounting for a total net portfolio loss of 2.28%.

All of the above should increase interest in new efficient technologies that can help businesses and consumers save energy and be more productive.

The President’s Clean Energy Economy commitments include:

• Making $1 billion in additional loan guarantee authority available and announcing new guidelines for distributed energy projects utilizing innovative technology and states looking to access this financing;
• Unlocking residential Property-Assessed Clean Energy (PACE) financing for single-family housing to make is easier for Americans to invest in clean energy technologies;
• Launching a new HUD and DOE program to provide homeowners with a simple way to measure and improve the energy efficiency of their homes, by increasing homeowners borrowing power;
• Creating a DOD Privatized Housing Solar Challenge, and announcing companies are committing to provide solar power to housing on over 40 military bases across the United States, while saving military families money on energy bills and making military communities more energy secure;
• Announcing $24 million for 11 projects in seven states to develop innovative solar technologies that double the amount of energy each solar panel can produce from the sun;
• Approving a transmission line that will support bringing online a 485-megawatt photovoltaic facility that will be constructed in Riverside County and produce enough renewable energy to power more than 145,000 homes; and
• Creating an Interagency Task Force to Promote a Clean Energy Future for All Americans; and announcing independent commitments from local governments, utilities, and businesses that are stepping up to drive energy efficiency in more than 300,000 low-income households and investing more than $220 million in energy saving activities for veterans and low-income customers to help decrease their energy bills.