By Conrad Burke, DuPont Photovoltaics | GreenTech Media
(Editor’s note: Posted opinion pieces do not necessarily reflect the opinions of Rose Law Group.)
Solar panel quality has become an issue worthy of widespread attention.
In 1960 one of the first commercial solar cells ever built cost about $400 for every watt of electricity produced and converted sunlight to electricity with just 10 percent efficiency. Today, efficiency has virtually doubled, and selling prices are down to $1 or less per watt. Advances in technology and cost improvements are driving renewables to become a growing part of our energy mix — currently, 14 percent and counting. The amount of new solar panels installed in the United States grew to 3,313 megawatts in 2012, up from 1,887 megawatts in 2011, marking 76 percent growth and another record-breaking year for the American solar industry, as per GTM Research. Globally, the solar power industry is on track to become a $100 billion market by 2015.
That said, the solar panel manufacturing industry is in a fight for survival. With prices plummeting 80 percent in just the last six years, operating margins for solar panel manufacturers are in the red. Some estimates show that there are more than 20 gigawatts of excess solar panel manufacturing capacity in the market today — a market that will consume about 28 gigawatts of solar panels this year. One industry source (GTM Research) predicts that 180 solar panel producers will be out of business by 2015, 54 of which are in China. Another industry source, Photon International, expects fewer than 50 module suppliers will be around by 2016.
