Solyndra
Solyndra Bankruptcy
Estimated impact: $535M
Solar panel manufacturer Solyndra received a $535 million federal loan guarantee and then filed for bankruptcy within two years. The company's cylindrical panel design was more expensive than conventional flat panels, and plummeting silicon prices destroyed its cost advantage. Leadership and government backers ignored market signals indicating the technology was economically unviable.
Decision context
Whether to extend a $535 million federal loan guarantee to Solyndra despite declining silicon prices that were eroding the company's cost competitiveness against conventional solar panels.
Biases present in the decision
Toxic combinations
- Optimism Trap
Reference class base rates
Across all 146 curated case studies in our library:
Lessons learned
- Overconfidence in a differentiated technology can blind investors to commodity price dynamics that undermine the value proposition.
- Planning fallacy in clean energy ventures often overestimates market adoption timelines and underestimates competitive threats.
- Government loan guarantees should incorporate dynamic reassessment triggers tied to market condition changes.
Source: U.S. House Energy and Commerce Committee Investigation (2011); DOE Loan Programs Office records (Case Study)
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