Who will survive the solar energy shakeout?
Until the big chill, the solar energy was red-hot, tearing along with a decade-long growth rate that averaged 50 percent a year. Then the global recession hit – and the fizzling of subsidies in Spain and a credit crunch – which squeezed financing for many solar projects. Production slowed at plants making panels that turned sun into electricity. Prices fell sharply.
The recession is squeezing solar energy firms. These four could thrive.
So now, despite climate-change legislation in the United States and a push for cleaner energy worldwide, a global industry shakeout looms, many analysts predict. And not a small shudder. They anticipate an earthquake of consolidation likely to leave only strong competitors standing.
Currently, some 250 companies around the world make solar photovoltaic modules.
“In five years, there probably can be only a couple of dozen of them,” says Travis Bradford, president of the Prometheus Institute for Sustainable Development in Chicago. “At most.”
Which companies will be the winners? The ones with deep pockets, cutting-edge technology, and a rigorous focus on cutting costs. They’ll need to be big enough to build a brand name and demonstrate staying power. As close observers explain, customers want to know that the solar-energy companies they buy from today will be around to honor their warranties in the future.
