The credit crunch is apparently already having an impact on the renewable energy world.

Solyndra, the secretive maker of copper indium gallium selenide (CIGS) solar cells, in August was trying to raise $350 million to help build manufacturing facilities. While it may have raised some money, it did not get the full amount, say sources. As a result, Solyndra will restructure the deal.

The company has a 400 plus employees but has yet to produce products in commercial volumes, and it is implementing cost cutting, according to sources. Solyndra does not comment on news stories.

For the past several weeks, VCs and others have predicted that the CIGS market would soon crash. Five CIGS companies raised over $344 million through 2007. Then, in 2008, funding seemed to go into overdrive. Nanosolar raised $300 million alone and others like Miasole and Solyndra were seeking $200 and $350 million, respectively. SoloPower raised $200 million, according to sources. Yet few of these companies had produced many panels.

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