It seems that government funding might be the kiss of death for those in the solar industry. Greentech Media is reporting that according to “reliable sources within the company,” Colorado-based Abound Solar is on the verge of a total meltdown. GM’s Eric Wesoff reports that despite millions of dollars in funding from the Department of Energy, the firm has been plagued by layoffs and efficiency challenges, and may be closing its doors as early as today.
Wessoff’s sources say there will be a meeting at 11am on Thursday to break the news, although company spokesman Trent Waterhouse said that “Abound is not closing tomorrow,” and “Abound staff is not being laid off immediately.”
Update (11:17 am MT): The Deprtment of Energy has now confirmed that Abound Solar will indeed file for bankruptcy. “Because of the strong protections we put in place for taxpayers, the department has already protected more than 80% of the original loan amount,” wrote Energy Department spokesman Damien LaVera. “Once the bankruptcy liquidation is complete, the Department expects the total loss to the taxpayer to be between 10 and 15 percent of the original loan amount.”
The firm was the beneficiary of a $400 million DOE loan guarantee, only $70 million of which has been drawn down, so although there will inevitably be comparisons drawn to the Solyndra scandal, Abound’s difficulties are occurring on a much smaller scale.
Despite being lauded as a green energy success story by President Barack Obama and Colorado Senator Mark Udall, Abound Solar found itself the center of uncomfortable public scrutiny earlier this year, when it laid off almost 200 workers.
As a manufacturer of 2-foot-by-4-foot CdTe PV panels, also made by First Solar and General Electric, Abound had some stiff competition. Faced with the plummeting price of Chinese polycrystalline solar panels, the company was scrambling to reduce costs while also boosting efficiency.
via GreenTech Media
Main image credit: DOE Abound Solar site