Solyndra

Solyndra manufactured cylindrical solar panels and received a $535M loan guarantee from the US Department of Energy—the first under the 2009 stimulus program. The company bet on a novel design that eliminated the need for silicon, which was expensive at the time. But Chinese manufacturers flooded the market with cheap conventional silicon panels, crashing prices by 75%. Solyndra's higher-cost product became uncompetitive overnight. The company filed for bankruptcy in 2011, becoming a political flashpoint in the clean energy debate. Total losses exceeded $1.1 billion including private investment. The lesson: building a business on temporary market conditions (high silicon prices) or government policy (subsidies) creates existential risk when those conditions change.