Evergreen Solar recently filing for bankruptcy protection has unnerved investors and doesn’t bode well for exchange traded funds that track the solar energy sector.

“Solar industry observers have been watching this train coming for months. As prices fall and margins are squeezed, there is bound to be a shakeout of solar manufacturers. And the first domino has fallen,” The Motley Fool writes.

On Aug. 24,  Evergreen Solar will be delisted from the Nasdaq Stock Market due to the bankruptcy filing and asset deficiency under listing rules, reports Kyle Alspach for Boston Business Journal.

Guggenheim Solar ETF (NYSEArca: TAN) and Market Vectors Solar Energy (NYSEArca: KWT) track the alternative energy sector. The ETFs are diversified across the industry, which lessens the pain of one company blowing up. However, Evergreen Solar slipping into bankruptcy obviously raises concerns about the sector’s outlook. [Will SunPower, Ford Deal Lift Solar ETFs?]

Evergreen Solar will be liquidating assets to pay off around $485.6 million owed to creditors. The company is valued at $424.5 million. [Solar ETF Points to Lower Oil Prices]

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