Three US solar manufacturers declare bankruptcy in August

[wtmusic]

"The solar equipment business appears to be undergoing a shakeout, as three US solar firms have declared bankruptcy in the last few weeks. The most prominent of these was Solyndra, which was notable for its receipt of a $535 million federal loan guarantee. Joining Solyndra in bankruptcy filings were Massachusetts-based Evergreen Solar, which had been ailing for more than a year, and former Intel spin-off SpectraWatt. These failures raise many questions, but one that I haven't seen discussed much is whether these companies' assets will merely be absorbed into other, more successful solar firms, or effectively sold for scrap. I suspect the outcome will be quite different from that of the ethanol bankruptcies that followed the financial crisis.

Observers of these firms might be tempted to look to the ethanol industry for a model of how their bankruptcies could turn out. After all, ethanol represents another green industry--or at least one with green aspirations--the growth of which has also been entirely predicated on government subsidies and mandates. And in a pattern similar to the current situation in the global solar industry, US ethanol producers had invested aggressively in capacity expansion ahead of actual demand and were faced with high costs that couldn't be recovered in the marketplace, particularly when growth slowed and the price of their product fell during the aftermath of the financial crisis. The shakeout that ensued saw a number of ethanol producers, including one the largest, VeraSun, enter bankruptcy with the intention of reorganizing, though most ended up in liquidation. With the exception of a few small facilities, the vast majority of the ethanol plants that were idled by these business failures were acquired and restarted by larger, better-capitalized entities such as refiner Valero. The buyers paid $0.30-.50 on the dollar for the assets, and most now have profitable ethanol businesses, after the legacy cost overhang was removed."

http://theenergycollective.com/geoffrey-styles/64485/will-solar-bankruptcies-be-different-ethanols?utm_source=feedburner&utm_medium=feed&utm_campaign=The+Energy+Collective+%28all+posts%29

[OHdem10]

1. Many things contribute,: Cheaper Solar Panels imported from China

The Economy itself. When almost half the working population
is not employed, you are left with a very small customer
base.

[kestrel91316]

2. How are people supposed to be able to put solar panels on their roof when

they are close to losing that roof and becoming homeless?

I think this is tragic on so many levels. We need these companies HERE because we need the jobs HERE. Once again, cheap Chinese goods win.

[wtmusic]

4. First Solar and Sunpower are hanging on...barely.

Both have tech that could make or break them, but they're all toast if Obama doesn't start playing hardball in trade negotiations.

[INdemo]

3. yes..but about Ethanol Producers..

Ethanol production is subsidized by the Federal Gov't..included of course in the budget..
Republicans and Republicrats will probably cut that subsidy and many plants will close..I dont suppose big oil
lobbying had anything to do with that but many of these Ethanol are just barely hanging on.

[DirkGently]

5. Imagine if the 6 trillion or so we've borrowed for wars had gone into green infrastructure.