A massive new Westford solar-power plant heavily subsidized by state and federal aid is using the same kind of cut-rate Chinese solar panels that drove publicly backed Evergreen Solar and Solyndra out of business, drawing the ire of Massachusetts labor and business groups.
"These are types of things that we need to put a stop to,” Massachusetts AFL-CIO President Steven Tolman told the Herald yesterday. “We know that the best way out of this down economy is (to create) jobs here.”
Robert Rio of the Associated Industries of Massachusetts called it “hypocritical to be using (tax) benefits to create jobs in China.”
Boston’s Cathartes Private Investments and developer/partner Nexamp unveiled the $23 million solar project this week, attracting state Energy and Environmental Affairs Secretary Richard Sullivan and bragging that “what distinguishes this project from others is that all of the developers, financiers, operators, utility-partner and end-users will all be Massachusetts companies.”
That’s all true, but the list omits the company making the plant’s solar panels: China’s Suntech Power.
Cathartes chief Jim Goldenberg confirmed yesterday that the panels come from China. He said Cathartes chose Suntech for price reasons.
"The more our project costs to build, the more of a subsidy it’s going to require — which ultimately comes from ratepayers and taxpayers,” he said. The project, built on 22 acres in Westford off of Route 3, will be the state’s largest private solar producer, generating 4.5 megawatt of power.
But Cathartes’ move comes just months after Evergreen filed for bankruptcy despite getting a $58 million state-aid package backed by Gov. Deval Patrick.
The solar-panel maker blamed cheap Chinese competition for its demise, which threw about 800 Bay State employees out of work.
California solar-technology firm Solyndra likewise cited Chinese competition in seeking bankruptcy last month.
Solyndra failed — at a cost of 1,100 jobs — even though President Obama had championed a $535 million federal loan guarantee for the firm.
Cathartes is getting a $6 million U.S. government investment tax credit and a $5.8 million low-interest loan awarded by quasi-public MassDevelopment and funded with federal money.
Patrick yesterday defended the project’s backing, noting that Chinese solar firms compete fiercely.
"It has a whole lot to do with substantial government subsidies that China provides that a state like Massachusetts can’t keep up with,” Patrick told the Herald. “Most developers will (just) look for the best price.”
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