Solyndra and the first US solar wave (2006-2011)
Solyndra, a California thin-film startup, received a $535 million federal loan guarantee. In 2011, with Chinese silicon production glutting the market and panel prices collapsing, it filed for bankruptcy and laid off about 1,100 workers.
The collapse became a political scandal and scared investors away from US solar factories.
It left a lasting belief that US plants could not beat Chinese costs, the exact problem the IRA was designed to correct.
It shows the earlier failure mode: US factories that depended on market prices alone struggled against subsidized Chinese scale. The IRA changed the economics by paying for domestic production directly.
