Download now: King Coal Triple Play

Another Solar Failure

Abound Solar Goes Belly Up

Written by Swagato Chakravorty
Posted July 2, 2012 at 4:38PM

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.



Related Articles

Solar and Natural Gas
Complementary interaction with renewables is a major market for natural gas. Conversely, a natural gas back-up helps solve the intermittent issues of solar and wind.
Grid Parity is Here
It's not just another solar company... It's the company that will make all solar panels - no matter who makes them - as cheap, or cheaper, than fossil fuels.
Solar in Japan
Solar in Japan is heating up, Jeff Siegel talks about how Japan's quest for solar has sparked a billion-dollar investment.