President Joe Biden is set to meet with Democratic governors in an effort to bolster support following the recent debate. This move comes as Biden aims to solidify his position and rally his party around key legislative achievements, particularly in the realm of climate change and renewable energy.
During his presidential campaign, Biden pledged to invest billions to combat climate change. One of the major beneficiaries of this promise has been First Solar, the largest domestic manufacturer of solar panels. The company and its affiliates contributed at least $1.5 million to Biden’s 2020 campaign. Post-election, First Solar spent an additional $2.8 million lobbying the Biden administration and Congress, engaging in high-level meetings with top officials.
This strategy marked a significant shift from the company’s stance during Donald Trump’s presidency, when First Solar criticized the administration’s approach to renewable energy. The company’s efforts have paid off, as it has emerged as a major beneficiary of the $1 trillion in environmental spending under the Inflation Reduction Act, signed by Biden in 2022. This legislation, passed solely with Democratic votes, has led to a doubling of First Solar’s stock price and a surge in profits, thanks to new federal subsidies potentially worth up to $10 billion over a decade.
Biden and his fellow Democrats highlight this legislation as a prime example of investing in alternative energy to benefit both the environment and the economy. However, First Solar’s case also illustrates how such legislation, influenced by lobbying and campaign contributions, can yield substantial returns for well-connected entities.
White House spokesperson Angelo Fernández Hernández did not directly address First Solar’s lobbying efforts but emphasized Biden’s commitment to an ambitious climate agenda. “President Biden has led and delivered on the most ambitious climate agenda in history,” Fernández Hernández stated. “The White House regularly engages with industry leaders across all sectors, including clean energy manufacturers and gas and oil producers.”
First Solar CEO Mark Widmar noted that the new subsidies have bolstered the company’s domestic presence. He also criticized competitors with ties to China, which dominates the solar industry. “Unlike others who routinely spend substantially more lobbying on behalf of Chinese companies that circumvent US laws and deepen strategic vulnerabilities, our interests lie in a diverse, competitive domestic solar manufacturing base supporting American jobs, economic value, and energy security,” Widmar said.
Founded in 1999, First Solar went public in 2006, the same year Al Gore’s documentary “An Inconvenient Truth” raised awareness about climate change. The company built strong ties with Democrats during Barack Obama’s administration, benefiting from billions in government-backed loans.
When the Biden administration began drafting rules to implement the new law, First Solar executives and lobbyists met multiple times with administration officials, including John Podesta, who oversaw the environmental provisions. One notable meeting included Podesta, Widmar, and First Solar’s contract lobbyist Claudia James, a longtime friend of Podesta.
First Solar stands to gain billions in tax credits for domestic clean energy manufacturers, a policy designed to enhance U.S. competitiveness against China. These credits, intended for clean-energy businesses, can be sold on the open market to companies with little involvement in fighting climate change. Last December, First Solar agreed to sell approximately $650 million of these credits to a tech company, providing a significant cash influx courtesy of the U.S. government.
Investors in First Solar, including major Democratic donors, have also reaped benefits as the company’s stock price soared. Farhad “Fred” Ebrahimi, who owns about 5% of First Solar, was added to Forbes’ billionaires list in 2023. Ebrahimi and his family contributed at least $1 million to Biden’s campaign.
Not all Democratic investments in alternative energy have been successful. The 2011 bankruptcy of Solyndra, which received $500 million in government-backed loans, became a Republican rallying cry and drew attention to First Solar. The company’s chairman was called to testify before the GOP-controlled House Oversight Committee about tactics used to secure $2.4 billion in loans from the Obama administration.
In an email to House Republicans, a First Solar executive pressured the Department of Energy for financing, suggesting that without approval, a factory in Mesa, Arizona, might not be built. The loans were granted, but the factory was never completed. First Solar spokesman Reuven Proenca attributed the decision to a downturn in the solar industry, which also led to the closure of a factory in Germany.
In 2020, First Solar paid $350 million to settle a securities fraud lawsuit, denying wrongdoing. The settlement included no admission of liability. Court documents revealed that investors accused company officials of lying about a major manufacturing defect that cost $260 million to fix. By downplaying the issue, executives preserved First Solar’s stock price while some officials sold large amounts of personally held stock.
Proenca stated that the company settled the case to “focus on driving the business forward.”
As Biden prepares to meet with Democratic governors, the focus will be on reinforcing support for his climate agenda and other key initiatives. This meeting aims to unify the party and ensure continued progress on the administration’s ambitious goals.
Source: Associated Press
