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World’s Largest Solar Panel Manufacturer Suntech Declares Bankruptcy in China

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Suntech was once the world’s largest manufacturer of solar panels – but the company was just pushed into bankruptcy after defaulting on $541 million in bond payments. The company was a powerful force in China’s renewable energy market, generating 2.4 gigawatts worth of solar modules in 2011 alone. But the company faced a rapid decline as solar panel production in China increased tenfold over the past five years, causing prices to drop by as much as 75 percent. And that’s a small piece of a global problem in the industry—while year-on-year solar demand continues to grow, production capacity has far outstripped demand, putting Suntech in the company of Solyndra, German Solar Millennium, and a number of other solar manufacturers in Europe and the US that have been forced to cut back production, file for bankruptcy protection or shut down altogether.

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