Elon Musk’s Tesla got a crucial loan from this federal clean energy finance program: Now he may DOGE it
The DOE is working to speed up the application process for clean energy companies seeking funding before Trump 2.0. Read More
The U.S. Department of Energy (DOE) Loan Program Office (LPO) that has financed a historic $44 billion in clean energy projects finds itself facing uncertain times. Department officials last week hosted the second annual Deploy24 conference, where they joined executives from the renewable energy technology sector came together to discuss the future of the clean energy industry.
The Department of Energy proudly says LPO’s $43.9 billion portfolio “has supported job creation and is preventing harmful CO2 pollution while enhancing American competitiveness in the global economy.” Most notable, perhaps given Elon Musk’s zealous cost-cutting role in the new administration, is LPO’s bailout of Tesla in 2010 with a $465 million loan.
The timing of the conference — just a little over a month before the inauguration of President-elect Donald Trump, a well-known critic of climate change and clean energy initiatives — dampened the hopeful spirit of the gathering. And that was never clearer than during a private media roundtable held with Jigar Shah, director of the DOE’s Loan Program Office, and the executives of four clean tech companies to recently close on funds from LPO.
What you need to know about LPO
LPO will keep working until the inauguration
When asked whether LPO will be able to close any more deals before the Trump administration is officially back in power, Shah said that most depended upon the applicant. Noting that the fastest LPO has closed a loan is 40 days (at the time of the roundtable, there were 46 days until the inauguration Jan. 20), Shah said that if the applicants are willing to move faster on their end, he doesn’t see why more funds can’t close before Jan. 20. Shah described current applicants as “sufficiently motivated to move forward,” at faster pace.
LPO’s fate during Trump 2.0 is still unclear
No one knows how Trump and Musk’s DOGE will reduce federal programming or clean energy tax credits, including Shah. But that uncertainty didn’t diminish his perspective on the future.
He said that current and prospective borrowers “expect LPO to continue function after the inauguration,” adding that the LPO needs to continue to function during the new administration to ensure the loans, paid for by the American taxpayer, are fully repaid to the federal government.
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