A green energy bubble might soon pop, as clean energy companies struggle to stay afloat under President Donald Trump.
Pine Gate Renewables is the latest company to run into financial difficulty. The Asheville, North Carolina-based solar developer is planning to file for bankruptcy protection in early November, according to a person familiar with the company’s plans who was granted anonymity to discuss private business matters. It has already told state regulators it’s planning mass layoffs at one of its subsidiaries.
Pine Gate is not the first solar company to run into trouble this year. Residential solar installer Sunnova, solar lender Solar Mosaic and panel-maker Meyer Burger all have filed for Chapter 11 bankruptcy protection this year. Generate Capital, a green investment fund that holds a stake in Pine Gate, recently cut staff in an attempt to refocus its business strategy, according to two people familiar with its thinking.
The financial woes suggest an end to a green investment bubble that emerged under former President Joe Biden. The combination of low interest rates at the start of Biden’s term and clean energy tax credits passed as part of the Inflation Reduction Act prompted a surge in wind, solar and battery development. But even as renewable installations grew to record levels, they fell short of the growth rates some analysts predicted in the wake of the IRA’s passage. Higher interest rates and supply chain constraints resulted in higher project costs, causing the industry to grow slower than some expected.
