Another green energy firm bites the dust

By: Sharyl Attkisson
Topics: News

Abound Solar's thin-film solar panels.

/ Abound Solar

(CBS News) It was number 17 on the White House's 100 Recovery Projects That Are Changing America list. Now, Abound Solar is about to join the taxpayer-supported green energy firms that have filed for bankruptcy.

Abound Solar was approved for a $400 million dollar taxpayer loan guarantee under the same program as did now-bankrupt Solyndra. Abound received about $70 million of the total by last Sept., but failed to meet certain financial milestones and the Energy Department cut off the rest of the loan.

The Department of Energy announced news of Abound's impending bankruptcy in an article on its Website defending solar energy entitled "Solar Manufacturing: to Compete or Not to Compete."

Abound Solar was strongly supported by politicians in both parties. Its Indiana plant was supposed to create a thousand full time jobs and generate "several hundred million dollars in revenue." Backers included Senators Richard Lugar (R-IN), Evan Bayh (D-IN) and Representatives Dan Burton (R-IN), Pete Visclosky (D-IN), Mark Souder (R-IN), Mike Pence (R-IN), Baron Hill (D-IN), Joe Donnelly (D-IN), Brad Ellsworth (D-IN) and Andre Carson (D-IN). Abound laid off 280 workers last February and reportedly will lay off 125 more next week.

As to how much of the $70 million taxpayers will get back: that will be determined in bankruptcy court. The Energy Department says any money lost can be offset by tax dollars set aside in a loan-loss reserve established by Congress for this purpose.

Abound's loan has been under investigation by the House Oversight Committee which found the company had received a "junk credit rating of B, below that of the failed Solyndra," before the taxpayer investment.

The Energy Department says the solar industry employs 100,000 workers, double the 2009 number. "When the floor fell out on the price of solar panels, Abound's product was no longer cost competitive," said the Energy Department.

Abound will be the third company to declare bankruptcy in the Energy Department's 1705 program that guaranteed loans to 20 companies. Solyndra, which was approved for $535 million dollars, declared bankruptcy in Sept. 2011 and Beacon, which was approved for $43 million dollars, went bankrupt in Nov. 2011.

Sharyl Attkisson
Sharyl Attkisson is a CBS News investigative correspondent based in Washington. All of her stories, videos and blogs are available here.
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by Ulgnud June 29, 2012 12:40 AM EDT: No surprise there. Another failure. And people actually want 4 more years of this "America Destroying" loser.; Reply to this comment


by ThomasSense June 28, 2012 10:32 PM EDT: http://am.suntech-power.com/ Suntech is a Chinese company doing business all around the world. They have a factory in the U.S. America needs to invest in our own solar energy. This world has a limit on how much CO2 it can hold. But bad business decisions are not excusable. Demand for solar panels here can increase if the government changes regulations and provides incentives. Then good businesses can thrive. Germany's government incentives would be a good model.; Reply to this comment


by credibility2 June 28, 2012 9:29 PM EDT: This isn't surprising...our green president supports green companies...both are failures.; Reply to this comment

by bramletabercrombie June 28, 2012 7:35 PM EDT

Preventing an environmental catastrophe is not going to ever be profitable. Somebody needs to step in and keep all solar panel factories operating. We are going to need all the panels we can get or its curtains for certain.

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by askagain June 29, 2012 1:02 AM EDT: Great! So under your scenario, the government should keep evey failing business going. Sell that to the taxpayers.

by sjc_1 June 28, 2012 6:50 PM EDT

This amounts to less than 1% of what Bush spent in Iraq every year for 6 years, with a chance to create a new company employing lots of people. I do NOT mind loans to help create new companies, in fact I believe that they should to much MORE of this as soon as possible.

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by sjc_1 June 28, 2012 11:18 PM EDT: The private sector will not fund companies where they can not make a killing. If we waited for them to fund, we would fall farther behind. China GIVES billions of dollars to their solar industry, while we give a small fraction of that as loan guarantees. China now dominates one HALF of the world market for solar, ten times what they did 10 years ago.


by josephp5 June 28, 2012 5:50 PM EDT: Just because a green energy company fails it doesn't mean that the US should not be pursuing and encouraging green energy companies. A major reason for the failure of this company (and Solyndra) is that developing countries like India and China are investing heavily in green technology, creating fierce competition. The US must also compete fiercely. And this means ignoring the people that point up this failure as another indication that green energy is not worth pursuing. Most of those naysayers are being paid by Big Oil anyhow.; Reply to this comment

by lesserof2evil June 28, 2012 5:31 PM EDT

so how many American dollars and American lives were wasted on Iraqi soil? Apparently that did not matter to the republicon parrots.

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by rightofwrong June 28, 2012 6:53 PM EDT: relevancy?

by Jaylah54200 June 28, 2012 5:27 PM EDT

The fact that "green" companies ended up going under when the economy tanked does not mean that pursuing renewable energy sources is a bad idea.

In fact, our planet depends on it.

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by hillcruiser June 28, 2012 5:58 PM EDT: I don't think most would disagree. The problem is that we don't yet have the cultural values or practices to make green energy a priority in this country. Even for products and services we value, few companies have figured out how to make US-based operations financially viable in the global market. So how on earth did the government think funding US-based green energy product companies was a viable way to promote job growth?


by wfw3536 June 28, 2012 5:01 PM EDT: When Solyndra went bankrupt Obama said he would have funded it again. Just shows you he could care less about the billions of wasted money in these green energy companies.; Reply to this comment

by qyeteye June 28, 2012 5:00 PM EDT

As yourself the public expects perfection, bat for an average of 1000. And if tried - succeed. Failure does not exist in our world.

Great Depression, Savings & Loan Debacle, Great Recession
Outcomes of Republican led positions and policies

Don't pay attention to facts of yesterday
Just vote based on the words we say today

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