Years-long decline before final shutdown · Fatal mistake: Rooftop solar economics in Ecuador require upfront capital that SMEs could not access; no green financing product existed; CleanEC had to finance installations itself
Evaluating only CleanEC’s profile at its peak — without knowing the outcome — the model ranked Regulation as the #1 likely cause. Documented cause: Distribution.
Key Events Timeline
FOUNDING
FUNDING
MILESTONE
CRISIS
SHUTDOWN
Full Analysis
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Documented cause
CleanEC developed rooftop solar installations for Ecuadorian SMEs and light industry, identifying a strong energy cost reduction opportunity in a country with 300+ solar days annually. Installations cost $15,000-40,000 — beyond the cash capacity of most SMEs. Ecuadorian banks did not offer green financing products. CleanEC began financing installations itself to close deals, accumulating a $2.1M receivables book. Cash flow from repayments was slower than installation pace, and the company ran out of capital before its receivables matured.
Lesson
“CleanTech in Ecuador must pre-negotiate green financing partnerships with Banco del Pacífico or Banco Pichincha before signing installation contracts — without bank financing, the startup becomes the bank.”
Failure anatomy
Collapse type
Slow Death
🐌 LOW
Hype cycle
Peak
Moat type
Technology
Fatal mistake
Rooftop solar economics in Ecuador require upfront capital that SMEs could not access; no green financing product existed; CleanEC had to finance installations itself