The glut’s a comin…

While many are recognizing that a glut of solar polysilicon is going to reduce costs and the crunch in the credit markets is going to tailor down expected growth, what effect will this have on an industry which targets “grid parity” as its savior?
The fact is that silicon prices went from $22 per kilo to $450 per kilo in just 6 years and that was not sustainable. Unfortunately, this artificial price level invited newcomers to invest heavily in new production capacity with the theory that in this 40% growth market, demand would ALWAYS outstrip supply. Well nobody seems to remember that there is no industry in the world that does not operate in cycles, so those thoughts, combined with the unexpected worldwide credit crunch, seem to have created a panic dynamic, even in our industry.
STOP!. BREATHE!…and take a moment to remember that renewable energy is the sector of the future which is probably today’s BLUE CHIP industry. If there is a safe haven today, its in our business industry.
So hold onto your hats, understand enough to see beyond this current crisis, and batten down your hatch for a bumpy ride. If you based your business projections on anything that was not sustainable, time for action, not words, to make sure you survive this current bump in the road…
Sass