Last August, Solyndra Inc. folded despite a $535 million U. S. Energy Department loan. Now, Abound Solar Inc., a U.S. solar manufacturer, that won a $400 million U.S. loan security, will file for bankruptcy.
The company manufactures solar panels, the market for which has overheated due to competition from Chinese solar panel makers. As a result, prices have dropped steeply–by over half in some cases. Abound’s closing will represent a $40 to $60 million loss for U.S. taxpayers.
Bloomberg quotes Abound Solar: “Aggressive pricing actions from Chinese solar-panel companies have made it very difficult for an early stage startup company like Abound to scale in current market conditions.”
So far, the U.S. Energy Department has awarded around $35 billion to renewable energy firms in various forms. Of that, nearly 35 percent is meant for solar projects (which actually gain from the competitive panels market). Fortunately, only a small percentage of those projects receiving support have failed. The majority continue to thrive and employ US workers.
Trillions will be spent to secure the world's energy supply over the next two decades... and all sources are on the table.
Oil, Natural Gas, Solar, Wind. There will be money made.
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