The massive solar panel glut has not only caused Western solar companies to go bankrupt but has also caused mayhem in the Chinese solar panel industry.Many of the smaller companies have seen their utilization go down to 35% or lower with many of the others shutting down their production entirely.There are hundreds of small solar companies in China which started during the 2010 boom when global solar demand increased by more than 150% . However their small scale of operatoins and lack of brand power means that they are bearing the brunt. While the large Chinese solar panel producers have seen their utilization go down , most will survive given the support from Chinese Banks. For example LDK despite its more than $3 billion in debt and losses is still getting loans from Chinese Development Bank. But the smaller Chines OEM panel makers don’t have the government sugar daddy behind them.

Mahdindra Solar One a JV between India’s biggest conglomerates the Mahindra Group and a PE backed startup Kiran Energy is setting itself to become one of the biggest players in India’s Solar Energy.Mahindra Group which has dominant Indian companies in the Automobile Industry,Information Technology has set up 3 subsidiares to operate in the following segments

Solar Trade Wars are becoming the norm in the globe these days with the major one between USA and China.The instigator is the German solar company Solarworld which helped started the ITC Case in the USA.India too is thinking of putting some kind of import duty to protect its domestic solar panel producers which are dropping like flies.Chinese solar panel producers have swamped the world with super cheap solar modules.Though a part of their low prices can be explained by competitive advantage, another part is due to the labor,capital subsidy given by the Chinese government.It would not take a rocket scientist to say that some of the biggest Chinese solar companies are insolvent and would be dead within a month without Chinese state loans.

Saving bankrupt solar companies has become the national pasttime of most governments it seems.Competition in the solar market has become so severe that solar comapnies are failing left and right.This has made the government come out to save them with bailouts which only make the oversupply situation in the solar panel industry worse.While China is the worst culprit supporting hundreds of failing solar companies through cheap loans which will be never paid back,other governments are not far behind.

Solar Renewable Energy Certificate (SREC) Prices in New Jersey have been falling at a sharp rate from a high of $600 to $225 as high returns from falling solar panel prices and other tax breaks.This has led to a massive growth in solar installations in the state making it the 2nd largest state by solar capacity.New Jersey installations have crossed 500 MW and made it a huge green job driver in the state.However this boom has made the market driven SREC prices fall quite sharply.Though not falling as sharply as Pennsylvania where SREC prices have become a joke ,they are still low and falling.

Solar Power in India is growing by leaps and bounds with the federal and state governments heavily promoting solar energy production.India is set to become a gigawatt market in 2012 with around 400 MW already installed by 2011.The ancillary industries around the main solar power market are set to grow at a rapid clip as well.One of the unlikely sectors in solar products in India is the growth of solar cables.Note solar power plants require a lot of wire and cabling to connect thousands of solar panels to each other and to solar inverters.Besides solar power plants also require interconnection with the power grid.While today most of the solar cable is imported from outside,there is potential for a solar cable manufacturer to build a domestic capacity as well given the rapid growth expected in solar power.