A $2.2 billion solar facility in California’s Mojave Desert—the Ivanpah Solar Electric Generating System—is slated to close in 2026 due to persistent inefficiency and cost overruns.
The plant, opened in 2014 with backing from federal loan guarantees amounting to $1.6 billion under the Obama‑era Department of Energy, was designed with three 459‑foot solar towers and nearly 173,500 computer‑controlled mirrors (heliostats) to concentrate sunlight and produce steam. Despite its ambitious scale, it struggled to remain competitive with advancing photovoltaic (PV) solar technology.
Originally expected to operate through 2039, Ivanpah will now shut down more than a decade early. In early 2025, Pacific Gas & Electric (PG&E) reached contract termination deals with the facility’s owners, setting in motion the shutdown process.
Critics argue the plant’s failure underscores systemic problems with government‑subsidized green projects. Its technology was overtaken by simpler, cheaper PV installations, and it required constant supplemental natural gas to maintain operations. In contrast, PV solar has rapidly dropped in cost and increased in efficiency over the past decade.
In practice, Ivanpah was less a success than a cautionary tale of government picking energy winners. Its early collapse reflects the pitfalls of investing heavily in unproven or inflexible technology. The loss also represents a burden on taxpayers and energy ratepayers who subsidized the project.
