Solyndra Rounds Out the List of Solar Companies Filing for Bankruptcy
09-01-2011
We commented just a couple of weeks ago on the SolarTown blog about how solar manufacturing in the US has surrendered. We did not realize that the once glorified Solynda would so soon follow on the heels of Evergreen. As reported yesterday by ABC7 in San Francisco, Solyndra is filing for bankruptcy. The news article was relatively mild in its coverage: "Workers at Solyndra in Fremont got a jolt today: The solar panel maker is bankrupt and shutting down."
Solyndra was the recipient of a $535 million loan from the federal government, which may explain why no one from the company was willing to go on camera to talk about the downfall of Solyndra. According to the story, the reasons cited for the downfall of Solyndra over supply of solar panels, falling prices and tight credit for its problems along with foreign competition.
The Wall Street Journal's take on the bankruptcy: "Solyndra's planned Chapter 11 filing is a black eye for the clean-technology industry and for a federal program to guarantee $25 billion in loans, showing the danger of investing in a capital-intensive sector in which products can quickly become commoditized."
And a Forbes article highlights some of the basic issues facing solar manufacturers in the US, noting particularly that not only the federal government, but also some pretty smart investors like Richard Branson took a "shellacking." Forbes notes that "Solyndra's crash will almost certainly intensify a debate in Washington over whether the federal government did its due diligence in vetting Solyndra for a $535 million loan guarantee - or whether it should even be in the business of subsidizing new renewable energy technologies. Solyndra had become something of a poster child for the promise of the new clean green economy and the company's Fremont, Calif., factories became a favored backdrop for visiting dignitaries, from former Gov. Arnold Schwarzenegger to President Obama."
Forbes rhetorically poses the following question: "Can U.S. companies developing advanced solar technology compete against low-cost Chinese manufacturers who benefit from state support and a government policy to create markets at home and abroad for their products?" We will wait for the next shoe to drop to find out the answer.
