The cleantech companies that didn’t make it through 2024
Most startups fail. That’s the bitter truth awaiting hundreds of companies founded in the recent wave of energy and climate entrepreneurship. Success for a venture-capital-funded startup means an exit through a profitable acquisition or a public listing, but those wins have been few and far between for cleantech. And even the mature companies and industry icons that have managed to graduate from startup life can eventually stumble and fall. Amid high interest rates, frozen M&A markets, and a serious slowdown in public offerings, the opportunity for financial success has shrunk for startups. These factors also make it harder to raise new venture capital; funding for climatetech startups dropped by 20 percent in the first half of 2024. But even if better exit opportunities emerge and the venture dollars start flowing again, it won’t change that fundamental truth: Most startups fail. It’s the reality of the game; commercializing important new climate solutions requires lots of shots on goal. The redeeming aspect of failure is that it occasionally produces lessons, whether a company runs out of cash, customers, time, or ideas. Here are some of the climate tech companies that went belly-up in 2024 — and what can be learned from their sagas. Solar sunsets Arguably the most shocking cleantech corporate demise of 2024 was that of SunPower, a solar industry icon that grew from humble startup roots to a valuation in the billions, only to file for bankruptcy in August. Even as solar installations smash records in the U.S. and the federal government channels capital into onshoring solar panel production, SunPower found itself undone by China’s industrial policy might and its own boardroom missteps. High interest rates and other policy headwinds, like California’s NEM 3.0, didn’t help. Lesson: The tale of SunPower’s fall is too long and nuanced for a neat takeaway. But here’s an observation: China’s incremental technical progress in silicon solar cell efficiency eroded SunPower’s competitive edge, leaving it to fight on price against Chinese firms. That’s a losing battle even with government help. Also, tariffs don’t work. Over 13 years, Ubiquitous Energy raised more than $70 million in funding from venture and corporate investors to develop a transparent window coated with an energy-generating photovoltaic layer. The startup sent its employees home in April. Lesson: Building-integrated solar windows is one part technical challenge and nine parts convincing electricians, architects, and builders to accept the products — a more difficult task than turning window panes into solar panels. Ohio-based Toledo Solar wanted to compete with thin-film solar panel leader First Solar so desperately that it (allegedly) sold Malaysian-made First Solar modules under its own name, claiming they were made in America. The company ceased operations, such as they were, in July. Lesson: Toledo, Ohio, deserved better. Solar installer bloodbath High interest rates and rooftop solar incentive shifts in leading states rippled through the long tail of residential solar installers and led to scores of bankruptcies in the past two years, an unprecedented collapse. Here are a few of the larger casualties from this year: Sunworks, a residential and commercial solar installer, filed for bankruptcy in February. Founded in 2002, Sunworks had developed 224 megawatts of solar projects across 15 states and employed 640 people. Titan Solar operated in 16 states and abruptly shut down its operations in June. Utah-based residential solar company Lumio filed for bankruptcy in September. Lesson: Clean energy startups are sensitive to interest rate increases and policy changes — and politicians are eroding rooftop solar incentives following years of utility lobbying, all at a time when rates are sky-high. Energy storage setbacks Armed with billions in investor capital, scores of storage startups have been aiming to dethrone energy stalwarts like lithium-ion and diesel generators — but in the words of The Wire’s Omar Little, “If you come at the king, you best not miss.” These companies missed. Sweden’s Northvolt, once valued by investors at almost $12 billion, filed for bankruptcy in November in the year’s biggest battery bust. Founded in 2015 by two former Tesla engineers as Europe’s great EV-battery hope, Northvolt had raised over $6 billion from investors including Goldman Sachs, Baillie Gifford, IKEA, Siemens, Baron Funds, AP-fonden, BMW, and Volkswagen — in addition to raising billions of dollars in debt. Earlier this year, Northvolt shut down its lithium metal division, laying off almost 200 people at what had been Cuberg, a startup it acquired in 2021. Northvolt is now restructuring, selling off equipment, wiping out its existing investors, and chasing new funding. Lesson: European firms cannot compete with Chinese ones on low-margin, capital-intensive lithium-ion batteries while also earning capital returns and complying with regional environmental regulations and labor laws. Ambri, an energy storage aspirant with technology based on the research of MIT professor Donald Sadoway, declared bankruptcy in May. The long-in-the-tooth startup had raised more than $200 million for its calcium and antimony electrode-based battery cells from investors including Bill Gates, Paulson & Co., Khosla Ventures, and French energy giant TotalEnergies. In August, Gates and other investors purchased the company’s assets at auction. Lesson: A Bill Gates venture investment is the kiss of death for energy storage startups.
Most startups fail . That’s the bitter truth awaiting hundreds of companies founded in the recent wave of energy and climate entrepreneurship. Success for a venture-capital-funded startup means an exit through a profitable acquisition or a public listing, but those wins have been few and far between for cleantech.…
Most startups fail.
That’s the bitter truth awaiting hundreds of companies founded in the recent wave of energy and climate entrepreneurship.
Success for a venture-capital-funded startup means an exit through a profitable acquisition or a public listing, but those wins have been few and far between for cleantech. And even the mature companies and industry icons that have managed to graduate from startup life can eventually stumble and fall.
Amid high interest rates, frozen M&A markets, and a serious slowdown in public offerings, the opportunity for financial success has shrunk for startups. These factors also make it harder to raise new venture capital; funding for climatetech startups dropped by 20 percent in the first half of 2024.
But even if better exit opportunities emerge and the venture dollars start flowing again, it won’t change that fundamental truth: Most startups fail. It’s the reality of the game; commercializing important new climate solutions requires lots of shots on goal.
The redeeming aspect of failure is that it occasionally produces lessons, whether a company runs out of cash, customers, time, or ideas. Here are some of the climate tech companies that went belly-up in 2024 — and what can be learned from their sagas.
Solar sunsets
Arguably the most shocking cleantech corporate demise of 2024 was that of SunPower, a solar industry icon that grew from humble startup roots to a valuation in the billions, only to file for bankruptcy in August. Even as solar installations smash records in the U.S. and the federal government channels capital into onshoring solar panel production, SunPower found itself undone by China’s industrial policy might and its own boardroom missteps. High interest rates and other policy headwinds, like California’s NEM 3.0, didn’t help.
Lesson: The tale of SunPower’s fall is too long and nuanced for a neat takeaway. But here’s an observation: China’s incremental technical progress in silicon solar cell efficiency eroded SunPower’s competitive edge, leaving it to fight on price against Chinese firms. That’s a losing battle even with government help. Also, tariffs don’t work.
Over 13 years, Ubiquitous Energy raised more than $70 million in funding from venture and corporate investors to develop a transparent window coated with an energy-generating photovoltaic layer. The startup sent its employees home in April.
Lesson: Building-integrated solar windows is one part technical challenge and nine parts convincing electricians, architects, and builders to accept the products — a more difficult task than turning window panes into solar panels.
Ohio-based Toledo Solar wanted to compete with thin-film solar panel leader First Solar so desperately that it (allegedly) sold Malaysian-made First Solar modules under its own name, claiming they were made in America. The company ceased operations, such as they were, in July.
Lesson: Toledo, Ohio, deserved better.
Solar installer bloodbath
High interest rates and rooftop solar incentive shifts in leading states rippled through the long tail of residential solar installers and led to scores of bankruptcies in the past two years, an unprecedented collapse.
Here are a few of the larger casualties from this year: Sunworks, a residential and commercial solar installer, filed for bankruptcy in February. Founded in 2002, Sunworks had developed 224 megawatts of solar projects across 15 states and employed 640 people. Titan Solar operated in 16 states and abruptly shut down its operations in June. Utah-based residential solar company Lumio filed for bankruptcy in September.
Lesson: Clean energy startups are sensitive to interest rate increases and policy changes — and politicians are eroding rooftop solar incentives following years of utility lobbying, all at a time when rates are sky-high.
Energy storage setbacks
Armed with billions in investor capital, scores of storage startups have been aiming to dethrone energy stalwarts like lithium-ion and diesel generators — but in the words of The Wire’s Omar Little, “If you come at the king, you best not miss.”
These companies missed.
Sweden’s Northvolt, once valued by investors at almost $12 billion, filed for bankruptcy in November in the year’s biggest battery bust.
Founded in 2015 by two former Tesla engineers as Europe’s great EV-battery hope, Northvolt had raised over $6 billion from investors including Goldman Sachs, Baillie Gifford, IKEA, Siemens, Baron Funds, AP-fonden, BMW, and Volkswagen — in addition to raising billions of dollars in debt. Earlier this year, Northvolt shut down its lithium metal division, laying off almost 200 people at what had been Cuberg, a startup it acquired in 2021.
Northvolt is now restructuring, selling off equipment, wiping out its existing investors, and chasing new funding.
Lesson: European firms cannot compete with Chinese ones on low-margin, capital-intensive lithium-ion batteries while also earning capital returns and complying with regional environmental regulations and labor laws.
Ambri, an energy storage aspirant with technology based on the research of MIT professor Donald Sadoway, declared bankruptcy in May. The long-in-the-tooth startup had raised more than $200 million for its calcium and antimony electrode-based battery cells from investors including Bill Gates, Paulson & Co., Khosla Ventures, and French energy giant TotalEnergies. In August, Gates and other investors purchased the company’s assets at auction.
Lesson: A Bill Gates venture investment is the kiss of death for energy storage startups.