Titan Solar’s Collapse Highlights Issues In The Solar Industry
Titan Solar’s sudden shutdown has left many homeowners in a difficult situation. On June 13, the company informed its employees that it was closing because it could not find a buyer, as reported by Time. Titan Solar installed panels on over 100,000 homes, leaving many customers uncertain about the maintenance of their systems.
The solar industry has been plagued by instability, with Solar Insure noting that 16 major solar companies filed for bankruptcy between 2023 and 2024. An earlier report by Time estimated that around 100 local solar installers went bankrupt in 2023 alone.
Major players in the industry are also struggling. SunPower recently admitted to having “substantial doubt” about its ability to continue operations. Additionally, share prices for national solar installers like SunRun and Sunnova have dropped over 85% since 2020.
Andrew Follett from National Review criticized the Biden administration’s extensive spending on solar power, arguing that it has resulted in an unreliable power grid and a higher risk of blackouts. Follett claimed that the federal subsidies have not yielded significant benefits for Americans.
Biden’s administration has heavily invested in renewable energy, with the Inflation Reduction Act and the Infrastructure Investment and Jobs Act providing $919 billion in subsidies. This is in addition to the $450 billion spent on green energy from 2010 to 2019.
These subsidies have led to questionable practices by some companies. Sunnova, which received a $3 billion loan from the Biden administration, has been accused of coercing elderly dementia patients into signing expensive long-term contracts for solar panels.
A recent study revealed that renewable energy sources like solar account for 21% of American electricity production but receive the largest share of federal subsidies, amounting to $83.8 billion. Sen. John Barrasso (R-WY) criticized the heavy reliance on subsidies.
“Democrats have long claimed that solar energy is cheaper than traditional sources like coal, oil, and natural gas. This report shows that solar energy is largely dependent on substantial taxpayer-funded subsidies,” Barrasso stated. “Under the Biden Administration, American families are already paying too much for energy. They should not have to support special interests with their hard-earned money. Solar should be competing in the market, not relying on subsidies from Washington.”
These developments raise serious questions about the future of the solar industry and its sustainability without continued government support.