We’re living in a green energy political era, but it seems like the green energy infrastructure isn’t matching up to the demand and the policy measures politicians are pushing forward. When it becomes profitable to pass legislation, there’s no question that most politicians will vote yes on anything that passes their pockets.
President Joe Biden might have over-promised and under-delivered with his federal loan initiatives given to First Solar. Their investors are suing the solar energy company after a Biden-backed federal loan for $500 million was given to the company.
First Solar, owned by Lukas Walton, the owner of Walmart, lied about their solar power capabilities to investors who are now suing them. The lawsuit claims that its solar panels are “grossly underperforming and could not hit its wattage targets.” The investors also claim that the company did not disclose this information and made false statements.
The grant given to First Solar was for them to build a module manufacturing factory in India.
The lawsuit also says that Pontiac City General Employees Retirement System claimed the solar module technology was “not commercially ready at the time of its release, had a component that was failing in the field and causing fired, was not able to hit it’s projected and touted wattage targets, and had an inconsistent output all of which put First Solar at a competitive disadvantage.”
The Biden Administration also seems to have forgotten its due diligence when giving First Solar the $500 million loan. If the investors pull out of the company, there’s no good metric to determine what will happen. The investors discovered the misleading statements after several reports from Barclays, a financial analysis firm, were released, and the stock prices dropped from an artificially inflated rise in price.
That’s not the first time that First Solar has been sued. Two United Kingdom pensions sued First Solar for $350 million because of misleading financial statements that, similar to the current lawsuit, inflated the stock price between 2008 and 2012.
Walton also contributed $300,000 to Biden’s campaign and $100,000 to the Democratic National Committee. There’s no coincidence between the loan and the donation.
The Biden Administration should know that it messed up. Using a $500 million loan to favor a company with an owner who donated to the Democrat politicians is a bad move ethically and financially. There’s not a great way to get this one to go away.