The failure of solar panel manufacturer Solyndra in early November seems to have everyone worried about the US Department of Energy's loan programme. California-based Solyndra filed for Chapter 11 bankruptcy protection, closed its plant, and laid off all 1,100 workers, despite receiving a US$ 535M federal loan in 2009. According to the company, high production costs rendered it unable to compete with Chinese manufacturers. Critics, however, wonder if the government was too quick to guarantee a loan without proper due diligence. Solyndra is now undergoing a criminal investigation into whether its executives knowingly misled the government in order to receive the loan. But the real doubt will be whether US companies developing advanced solar technology can compete against low-cost Chinese manufacturers who benefit from state support and a government policy to create markets at home and abroad for their products.
