Thursday, July 14, 2011

Capacity conundrum continues: Happy solar buyers, worried suppliers - ElectroIQ

http://www.electroiq.com/articles/pvw/2011/july/capacity-conundrum-happy-con
sumers-worried-suppliers.html?cmpid=ENLIntersolarJuly142011


Capacity conundrum: Happy consumers, worried suppliers
By Paula Mints
principal analyst, PV Services Program, Navigant Consulting

July 12, 2011 - And the capacity news just keeps on coming. In a Tuesday
afternoon session on c-Si, Yingli announced that their 2011 year end
capacity will be 1.7GWp, roughly 10% of 2010 global shipments. Note that
more than one manufacturer (indeed, more than three) will be at roughly the
same capacity levels.

With incentive levels decreasing and capacity and inventory levels rising,
downward pressure on prices will continue and margins will continue to be
constrained. At this point, unfortunately, buyer expectations have been set
for ever-lower prices. It is great news for shoppers -- and not so hot for
those who make things.

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