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.
US Solar Projects including the 1000 MW Blythe Solar Project is now available for solar developers,installers at fire sale prices.The Insolvency Administrator is looking to sell parts and the whole of the solar project business of Solar Millennium and its US subsidiary Solar Trust of America.Note before filing of bankruptcy,the solar project developer had around 2000 MW of solar projects in the pipeline.
Chinese Solar Panel Producers have become a famous target of an anti dumping petition brought on by Solarworld and other companies.Though US Solar Installers have opposed the move as it will increase the solar panel prices in US,ITC has gone ahead with the investigation.Though the charges of subsidies and efficiency can be debated,the fact remains that US Solar Panel Producers can’t compete with Chinese Solar Panles.Massive industrial overcapacity in China has made the prices of products very cheap and made it difficult for Western producers to compete in most areas such as Chemical,Renewable Energy,Textiles etc.The Chinese win because of their low interest rates,cheap labor,free land,massive government support.
Income Inequality is a Theme that is getting played across the world in developing as well as developed nations.Most of the turmoil in 2011 in the Middle East and the Occupy Wall Street Movement can be attributed to the growing Income Gap between the Have and Have -Nots.The Great Recession in 2008 can also be looked upon as a fallout of this.Gini’s Coefficient which measures the income distribution gap has shown continued deterioration all over the world.The Middle Class is shrinking and growing poor by the day and it is not only the Poor Class that is getting affected.
The Chinese solar panel producers too are facing tough times with many companies running at low utilizations and almost everybody running losses.Some companies with huge debt burdens like LDK are running because of government largesse as they are effectively insolvent for all purposes.Expect more bankrutpcies in the coming year .It will take a very foolish or a very brave company to expand solar capacity this year.
Only USA Solar Installers are having a good time with below cost solar panels availabe increasing the returns and leading to massive increased.It looks like 2012 will be a good year for US solar installers who are expanding rapidly to take advantage of the falling solar module prices.Even Buffett is going all into solar development space acquiring billion dollar project in a classical case of vulture investing.
Solar Panel Manufacturers in USA are facing a torrid time from the falling prices of Chinese solar panels.This has caused the bankruptcies of some big solar panel companies in recent times like Solyndra,Spectrawatt and Evergreen Solar.Only those solar panel companies with the lowest cost and good quality will manage to survive the price war in solar panels that is currently on.Most companies are running losses as the prices of solar panels have decreased by 40% in 6 months.This would cause any industry to see massive bankruptcies and this is the case with the solar panel industry as well.Note Solar Industry is a new one with rapid technology and cost changes which makes startups with bad business models go bust.This is a natural effect of capitalism and nothing to be afraid of .However you have to be careful of which solar panel manufacturer to buy from as your 25 year solar panel warranty will become useless if the solar panel manufacturer from which you brought the solar panel goes out of business.On the Bright Side the sharply declining costs of solar has made it the biggest advantage of using solar power.