Solyndra got a $535M U.S. loan guarantee — then Chinese solar panels killed it

Solyndra was founded in 2005 by Chris Gronet to manufacture cylindrical CIGS thin-film solar panels. The technology was designed to capture direct, indirect and reflected light, making it suitable for flat rooftops without tilting. In 2009, the U.S. Department of Energy issued a $535 million loan guarantee to Solyndra under the American Recovery and Reinvestment Act — the first recipient of the program.

The company built a $733 million factory (Fab 2) in Fremont, California. Between 2009 and mid-2011, the price of polysilicon dropped roughly 89% due to Chinese manufacturers' advances in the Siemens process. Conventional crystalline silicon panels became dramatically cheaper, destroying Solyndra's cost advantage. The company's panel efficiency was about 8.5% — far below the 12-14% cell efficiency it advertised.

Solyndra filed for Chapter 11 bankruptcy on 31 August 2011, laid off 1,100 employees, and ceased all operations. Taxpayers lost approximately $528 million on the loan. An FBI investigation found no criminal wrongdoing. Solyndra recovered about $52.5 million through antitrust settlements with Chinese solar manufacturers Yingli and Trina Solar.