Wednesday, October 26, 2011

A Darwinian Moment in Solar

More bad news.  Panasonic discontinues expansion plans. Schott slows down its US production line and laid off 23 temporary workers. First Solar & CEO part ways. The dropping price of PV is great for consumers but distributors are losing money on modules they bought at a higher cost.  Because distributors are not ordering from the manufacturers, the manufacturers have too much inventory.  The manufacturers have to dump product so they are going directly to installers & project developers, so further depressing prices.  Count on more blood on the streets through spring 2012.  This is a Darwinian moment. The industry will survive and be stronger for it but count on fewer players.

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