Abound Solar is a solar panel that previously received a $400 million loan guarantee from the federal government. However, competition from manufacturers who make the panels cheaper in China and the plummeting prices of the product have caused Abound Solar to admit that it needs to file for bankruptcy protection. The solar panel company used about $68 million of their federal loan before the Energy Department had to cut off its credit. The government withheld their granted advances after they saw the disaster that happened to Solyndra, another solar panel company.

The government is all for clean and natural energy sources, but their grant to Solyndra ended in a bankruptcy after they had received and used the majority of $528 million in government-backed funds. The company received their fortune as a part of the 2009 stimulus package, and was the first company to be allocated out of the $18 billion set aside for company loans in the government budget. Yet the company’s failure to recover from their financial depreciative situation caused Washington to debate whether or not the stimulus package was a good idea after all. Eventually, they pulled the plug on many of their loans, including the one to Abound Solar.

In China, companies are able to make the same solar panels sold in the U.S. However, because of the abundance of cheap labor and the readiness of supplies, the Asian companies are able to manufacture the panels in a cheaper manner. They then sell the solar packages to consumers for a fraction of the American price. With the advent of the internet, many markets have extended. Companies like Abound Solar didn’t have to worry about Chinese competitors as often 20 years ago, but with a few clicks homeowners can now obtain their solar energy from a cheaper source overseas.

Republicans in politics started to question the Obama Administration after the failure of the Solyndra financing. The government became divided over the issue. GOP party members began to argue that supporting clean energy companies was a waste of American taxpayers’ money, while some Democrats argued that the clean energy companies were a worthy investment that would result in better electricity sources throughout the nation. Abound Solar tried to protect their company by eventually closing down their factory in February. They wanted to conserve resources while they worked on developing a unique and advanced product that would surpass the inventory being sold by competitors all over the world.

Abound Solar worked on a technique which made electricity from sunlight using cadmium telluride. They argued that their invention had a cost advantage over other solar panel companies, because the cadmium telluride was cheaper than the more common silicon cells used in panels. The business venture looked promising until silicon cells plunged in price, becoming more affordable for consumers. When the undertaking failed, the company announced that it would dismiss 125 employees and file for bankruptcy almost immediately. Analysts say that the global oversupply of manufacturing capacities has made life tough for solar panel workers.

Another company called Beacon Power also filed a month after Solyndra, despite the fact that they had invented a new product. A123 Systems, which is working on creating electric cars, is also in a precarious financial situation, but will try to lay off more workers before declaring bankruptcy. Other companies that were a part of the stimulus package like Fisker Automotive have been firing employees as they scramble to recover the money to pay back their exorbitant loan. In America today, it is hard to make a company take off. This is especially true if you run a company that has overseas competition. Talk to a bankruptcy attorney today if you have debt that you need to repay. Bankruptcy may be your best option, and allow you to recover some of the debt that you need to pay back.