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Tough Competition by Chinese Solar Panel Manufacturers
Plunging prices in the photovoltaic (PV) solar panels market has caused a number of bankruptcies, mergers and acquisitions. Additionally, many governments are reducing feed-in-tariff subsidies as part of their austerity measures, affecting the affordability of solar panels for homeowners.
With China now manufacturing around 60% of the world’s solar panels, Chinese manufacturers are at the forefront of the solar panel market. As the market consolidates, only those companies best positioned are likely to survive until solar panel prices recover.
Suntech Power Holdings is a vertically integrated multi-national solar panel manufacturing company. Suntech’s installed solar panels produce over 5 gigawatts (GW) of capacity, and the company plans to double this in two years.
Plunging prices of solar panels are eroding profit margins and will result in the market consolidating. Many US manufacturers have been bankrupted due to their inability to compete with the price of solar panels from China. Government subsidy cuts could affect short- to medium-term demand for solar panels.
Find this interesting. For more, please read our case Suntech Power Holdings Case Study: Operating in a Hostile Market or Renewable Energy: Global Industry Guide