2nd Toledo solar company defaults on loan
Wed, 12 Sep 2012 21:32:08 GMT —
The cost to power your home or business with solar energy is out of the reach of most individuals, which might be a reason some start-up companies have had trouble makeing their government loan payments.
"Installation in your house may cost you anywhere from $5 to $6 per watt today. The commercial, large scale utility installations may be from $2.5 to $4 per watt," says Nextronex CEO Bruce Larsen.
Given these prices, it would cost anywhere from $15-25,000 to convert a 1,500 square foot home depending on the energy use, but those prices are expected to fall.
Larsen says, "The Department of Energy has both a goal and a projection that solar can reach cost [equal] with fossil fuels by 2017."
However many solar industry start-ups may not be able to wait that long.
Larsen says until those prices do come down, the industry is reliant on the government's help. He says, "I believe that the solar industry is subsudised is to encourage the development of that technology necessary to be cost-competetive."
Though receiving government, the facts say that around half of all businesses fail.
"I think any company that borrows money, just like any individual that borrows money, there always is a risk of that business enterprise failing and not meeting its objectives," says Larsen.
Along with Buckeye Silicon, Willard & Kelsey Solar Group in Perrysburg is also in default with their government loan. Their outstanding balance of $4 million is due September 12th.
"If a company defaults on its loan, it doesn't necessarily mean it's the end of the world. It happens many times in businesses and many times they recover," explains Larsen.
The solar industry, however, might be related to the plasma television or the Blue Ray disk. They were very expensice when they first came out, but have now reduced to competetive prices in the market. And the technology behind solar energy inversion is relatively new.