Solar Manufacturers Face Tough Competitive Environment
Wednesday, October 13th 2010 7:00 AM
By GetSolar Staff.
Even as Silicon Valley solar darlings like Solyndra and MiaSolé planned to fundamentally change the world of solar manufacturing, trouble was brewing for them on the other side of the Pacific Ocean.
Chinese solar manufacturers - which have competitive advantages in the form of cheap labor and credit, government subsidies and economies of scale - have cut down on the cost of solar panels more than anyone thought possible
That's great news for U.S. consumers in the solar panel market, but not so good for home-grown solar innovation.
"The solar market has changed so much it’s almost enough to make you want to cry," Joseph Laia, chief executive of MiaSolé, told the New York Times. "We have spent a lot more time and energy focusing on costs a year or two before we thought we had to."
MiaSolé, like Solyndra, relies on thin-film solar technology, typically using CIGS (copper indium gallium selenide) modules that are less efficient but also cheaper than regular silicon panels.
But the California solar firms didn't expect the cost of conventional silicon panels to fall so far, so fast.
Solyndra had to scrap a much-publicized initial public offering earlier this year, and the sustainability of its high-cost business model is in doubt. While CIGS modules should be cheaper than silicon, they require expensive robotics and equipment to scale up.
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Even as Silicon Valley solar darlings like Solyndra and MiaSolé planned to fundamentally change the world of solar manufacturing, trouble was brewing for them on the other side of the Pacific Ocean.
