Despite the high-profile bankruptcy of solar panel maker Solyndra, the Department of Energy's renewable energy loan program is officially in the black as of September and now expects to earn as much as $5 to $6 billion.
According to a report released last week by the Energy Department's Loan Program Office, some $810 million in interest has already been collected on the $21.71 billion the program has loaned out so far. Solyndra and three other companies that failed after receiving funds from the program, meanwhile, accounted for $780 million in losses.
The $5-6B in projected earnings is calculated based on average rates and expected returns over the next 20 to 25 years. Michael Morosi, an analyst with Jetstream Capital, told Bloomberg Businessweek that that return is better than many venture capital and private equity investors, many of whom got burned by Solyndra along with the federal government, will see from their investments in renewable energy. “A positive return over 20 years in cleantech?” Morosi says. “That's not a bad outcome.”
According to the LPO report, 20 projects that received funds from the program are already in operation, generating revenue, and have begun paying back their loans (some $3.5 billion in loan principle has been recouped so far). Tesla Motors is perhaps the biggest success of the program so far, and it paid back its loan of $465 million last year—9 years early.
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