Indirectly this overproduction and the resulting lower prices will pull more customers to the Solar option. This will result in a permanent increase in the demand in the long run. So in my opinion there is no reason for the manufacturers to panic .
Overproduction should have been obvious with the rush to get production on line a couple of years ago when it seemed like everyone wanted in on the action. Now that they have it, they're looking for a way out. But then maybe the overproduction and resulting drop in prices will stimulate some more growth in installations. The industry is far from mature at this point, so we should expect to see some ups and downs.
Crude - that's the word for the way production is regulated. We have a factory full of 16-bit analog, u-sec timed controllers, finely tuned processes - and a production schedule that a blindfold gorilla could do better. What are all those smart sales, marketing, and finance people doing?
I admit production lines are like supertankers, not very manoeverable, so its sometimes better to keep them clean and running than to stop and foul up the process. A bit like steelmaking?
Is there a good ecosystem for the solar power generation? The price of solar panel is relatively high so the power generated is expensive. No single person would like to pay the bill. I'm wonder if there is another way out beside Government subsidy.
What business model/strategy Chinese manufacturer are using. It looks like a gamble where the stakes are already high but people keep playing until someone drops out. I am sure Chinese company can not keep pushing the price lower as this will hurt them the same.
And realistically this could be considered good news for Solar Energy production, just not good news for Solar Panel makers. Does anyone buying a PC care (other than positive) when DRAM prices crash? ... nope.
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