Solar exchange traded funds have been on the decline as greater competition among industry participants sends prices lower and small manufacturers out of business.

Guggenheim Solar ETF (NYSEArca: TAN) is down 33.7% year to date, while Market Vectors Solar Energy (NYSEArca: KWT) is down 38.5%.

The solar sector is turning into a cutthroat industry, with one more solar panel maker biting the dust.

Solyndra, which has garnered $535 million in federal loans on top of more than $700 million in venture capital financing, has filed for bankruptcy, according to The New York Times.

The company’s bankruptcy filing follows similar circumstances as Evergreen Solar and SpectraWatt. [Solar ETFs Down Over 20% Amid Industry Shakeout]

Higher production has flooded the solar panel market, pushing prices down an average 25%. Also, foreign capacity has expanded as austerity measures in the Eurozone reduce subsidies, along with lower demand.

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