Suntech Solar Panels SOLD OUT!

At least one solar manufacturer can’t make solar panels fast enough. Suntech Power Holdings, Inc. is officially sold out of solar panels through the second fiscal quarter of 2010. Suntech’s situation illustrates the end-of-year rebound that many solar companies experienced after a mostly dismal 2009. Factors such as falling prices and expected cuts in German solar incentives have spawned a bit of a shopping spree leading into the new decade.

“We’re basically selling anything we can produce,” said Steve Chadima, Vice President of External Affairs at Suntech, adding that he knows his company is not alone in dealing with the sudden increase in demand. Low demand in the midst of a global credit crisis has played a big role in bringing down PV equipment costs over the last year, but according to solar economists, they are not expected to rise with demand in 2010. However, we should expect prices to stabilize, and if they continue to fall at all, to do so at a less dramatic rate.

What will keep prices from rising if other companies experience the same sort of sales as Suntech? A high level of competition coupled with the natural cost decline of PV technology will keep prices stable. Furthermore, expected cuts in German incentives have many solar installers buying ahead of those cuts, which could be temporarily affecting the supply-demand ratio.

Suntech’s sold-out situation could also be construed as evidence of Chinese companies’ growing share of the solar market. Lower labor costs and increased government incentives have given Chinese firms an edge in the race to reduce costs. In addition to Suntech, companies like Trina Solar and Yingli Green Energy Holdings are expected to boom in 2010 as China pushes to gain dominance in the clean tech industry. In that regard, Suntech selling out of panels for at least half the year is a good start.

Source: Reuters

Photo Credit: SunTech

Posted on January 15th in Solar News by Dan.