Chinese manufacturers are flooding the market with cheap solar modules, sending prices down more than 20%, according to analyst reports.
The fire-sale prices for which Chinese solar companies are peddling modules is putting price pressure on solar companies trying to sell them at a premium, according to FBR Capital research.
The no-name brands are selling at extreme discounts, which is adding pressure to better known Chinese brands such as Suntech (STP) who are also cutting prices to gain market share. That action hurts Sunpower (SPWRA), which still sells modules at a premium.
According a Citi report (via Barron’s) installers are not brand loyal, and are more likely to purchase based on price, putting Suntech, or Yingli (YGE), in a strong position.
The Chinese manufacturers are unloading their modules in a bid to gain market share, and, according to FBR, “solar companies across the board face oversupply of cells and modules and a simultaneous lack of end-customer demand due to the credit crisis and a harsh winter.”
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