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You are viewing a single post made by Steve812 in the thread called DOE $1.4 Bil solar loan program - Project Amp.
|I guess I don't know the details of the financing structure: specifically, I don't know how much BOA stands to gain by managing this loan program. It seems to me that $1.4 billion is a tiny market compared to, say, the retail mortgage market with is something more than $10 trillion. My speculation is that it was easier for the DOE to use a single financier than to use sixteen smaller ones, but I share your concern about at least the symbolic gesture of rewarding incompetent management and fiduciary irresponsibility by throwing the contract in their general direction.
My guess is that most of the $1.4 billion will actually end up being used to purchase and install solar panels. I'm guessing, too, that the economics of such a program will be attractive because one of the primary costs of solar panel installations is the cost of renting real estate. The large rooftops of commercial buildings amount to rent-free spaces, cutting the cost of installation by - just guessing - thirty to fifty percent. Finally, because it is a loan guarantee, the money will be paid back - probably out of savings and revenues that result from the PV installations. It strikes me as a very well crafted program that should deliver peak generating capacity for a fraction of the price of, say, coal powered generation and without the carbon load. It seems to me that a program that creates four thousand jobs, invests in an economically sound method of creating electrical energy during peak load periods, saves money over other methods, and pays back the government with interest is very much a program in the public interest.
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