Solar manufacturers could be crushed in 2010, according to an analysis by the Information Network.
Pressure from Chinese manufacturers is driving prices lower, going from $4.05 per watt in Q3 2008 to $1.80 today. The result: 50% of solar manufacturers are going to have a hard time making it to 2011.
The solar manufacturers have 122 days of inventory on hand as opposed to the 71 they had in 2008. This will cause a serious crash in prices, as they clear inventory. By 2011, solar panels could cost just 50 cents a watt. At that price lots of panel makers will be clobbered.
The Information Network pointed out Energy Conversion Devices (ENER), JA Solar (JASO), LDK Solar (LDK), Q-Cells, ReneSola (SOL, and Yingli Green Energy (YGE) have all reported losses recently.
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