Market pressure in the solar energy industry has claimed two more corporate victims.
German photovoltaic (PV) cell manufacturer Q-Cells and Solar Trust of America both instigated insolvency proceedings in early April.
They follow in the footsteps of other high-profile solar sector companies, including SolarHybrid, Solar Millennium and Solon, that have gone bankrupt in the face of intense market competition and falling solar panel prices.
Q-Cells filed for insolvency in the German courts after failing to agree a financial restructuring with its creditors. Solar Trust of America, a 70 per cent subsidiary of Solar Millennium, is seeking court protection in the USA.
Solar Trust’s bankruptcy puts the future of the 1000 MW Blythe solar project in California in doubt. In April 2011 the Blythe project was awarded a loan guarantee by the US Department of Energy (DOE). It was originally conceived as a 1 GW concentrating solar power (CSP) project but was altered by Solar Trust last year to include 500 MW of PV capacity to help reduce costs.
Solar panel manufacturers have seen margins fall in the last 12 months because of an oversupply of PV panels on the market from cheaper producers in China and other parts of Asia.
