Analyst: 50% Of Solar Manufacturers Could Be Wiped Out In 2010

solar panels

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.

[Via Barron’s/Digitimes]

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