Solar company to file for bankruptcy despite $535 million loan guarantee
by Hugh Holub on Sep. 01, 2011, under politicsFrom The Hill
Solar company to file for bankruptcy despite $535 million loan guarantee
A California-based solar company that received a $535 million loan guarantee from the Obama administration announced Wednesday that it will shut down.
COMPANY PRESS ANNOUNCEMENT:
Solyndra Suspends Operations to Evaluate Reorganization Options
FREMONT, Calif., August 31, 2011 –
Solyndra LLC, the American manufacturer of innovative cylindrical solar systems for commercial rooftops today announced that global economic and solar industry market conditions have forced the Company to suspend its manufacturing operations. Solyndra intends to file a petition for relief under Chapter 11 of the U.S. Bankruptcy Code while it evaluates options, including a sale of the business and licensing of its advanced CIGS technology and manufacturing expertise.
As a result of the suspension of operations approximately 1,100 full-time and temporary employees are being laid off effective immediately.
Despite strong growth in the first half of 2011 and traction in North America with a number of orders for very large commercial rooftops, Solyndra could not achieve full-scale operations rapidly enough to compete in the near term with the resources of larger foreign manufacturers.
This competitive challenge was exacerbated by a global oversupply of solar panels and a severe compression of prices that in part resulted from uncertainty in governmental incentive programs in Europe and the decline in credit markets that finance solar systems.
We are incredibly proud of our employees, and we would like to thank our investors, channel partners, customers and suppliers, for the years of support that allowed us to bring our innovative technology to market. Distributed rooftop solar power makes sense, and our customers clearly recognize the advantages of Solyndra systems,” said Solyndra’s president and CEO, Brian Harrison. “Regulatory and policy uncertainties in recent months created significant near-term excess supply and price erosion. Raising incremental capital in this environment was not possible. This was an unexpected outcome and is most unfortunate.”
Customers who have implemented Solyndra solutions can be assured that their systems will generate economical, clean, solar power for decades.
The Hill Reported last Febrary that the House Energy and Commerce Committee was already investigating this loan guarantee.
Upton targets DOE solar loan guarantee
House Energy and Commerce Committee Chairman Fred Upton (R-Mich.) is launching an investigation into a decision by the Department of Energy to authorize a $535 million stimulus-law loan guarantee for a California solar company.
NBC News San Francisco:
Solyndra Filing a Disaster for Obama
President Obama faces political catastrophe in the form of Solyndra — a San Francisco Bay area solar company that he touted as a gleaming example of green technology. It has announced it will declare Chapter 11 bankruptcy. More than 1,100 people will lose their jobs.
COMMENTARY: How do these companies get so much money when they are sinking like stones…and the average American who lost his or her job ended up getting thrown out on their butts and lost their homes?
September 1st, 2011 on 7:31 am
It looks like the market forces trumped political favoritism. And it shows, as I have written before, that Obama is clueless on energy:
http://tucsoncitizen.com/wryheat/2009/06/08/obama-clueless-on-energy-part-1/
http://tucsoncitizen.com/wryheat/2009/06/09/obama-clueless-on-energy-part-2/
September 1st, 2011 on 7:31 am
Question here is, how to compete with low cost manufacturers from China, Brazil etc and still be profitable. One approach maybe to invest in R&D locally and come up with higher quality products that pack a better punch at generating more electricity for the same surface area as a standard panel?? Though it is a long term strategy, it maybe a sustainable solution that may see Solyndra through.
September 1st, 2011 on 7:37 am
Wow what a hit! It must be really hard to compete in a rapidly changing industry such as solar panels in a highly competitive market where price and quality are some of the most important key decision factors. I wish everyone the best at Solyndra.
September 1st, 2011 on 9:14 am
Another half billion $ in pork gone down the drain. Renewables, even with massive subsidies, are no match for effficient, economical, traditional fuel sources.
September 1st, 2011 on 1:22 pm
Aww, please. One solar company goes belly-up. So what. The DOD has been bankrolling(in the trillions of dollars) unproven weapon technology programs for decades.
September 3rd, 2011 on 7:38 am
Now you know where all your money has been going.The Obama administration has failed the American tax payers miserably except for the moochers and leeches who have never contributed a dime in taxes.So far solar is a farce and needs much more improvement before the American public and the government wastes more tax dollars.Until solar is financially affordable for all,we need to drill more for oil and gas to keep the dollar here.