Weeding Out Solar Companies
Due to the credit freeze, Optisolar falters and rising star First Solar expands.
Kevin Bullis 03/03/2009
- 5 Comments
Experts have long been predicting a winnowing of the solar industry. High prices for solar panels in recent years, due to a silicon shortage, had helped companies with expensive technologies survive. As more silicon became available, they predicted, prices would fall, forcing the less competitive companies, often startups, to call it quits. Now it looks as though frozen credit markets are also promoting the consolidation of the solar market.
First Solar, a company based in Tempe, AZ, whose thin-film solar cells are very cheap to make, is taking over solar farm projects that were originally going to be supplied by its competitor, Optisolar, a startup based in Hayward, CA. These projects include a contract for a large, 550-megawatt solar installation that Optisolar won last year. The startup couldn't raise the money it needed to scale up production to fulfill its contract and has announced massive layoffs.
The move is part of First Solar's strategy to not only make solar cells, but also install them in solar farms. The acquisition of Optisolar's projects also guarantees a market for First Solar's solar panels as the company continues to increase its manufacturing capacity.
The news hasn't all been bleak for the solar industry. The recent stimulus bill could help keep hope alive for solar startups by providing tax incentives.
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phoenix
172 Comments
the bigger they are
Without the benefit of Federal or State subsidies, most businesses which were never meant to survive in a free market system, won't. One only has to do a little research in the history of the number of attempts by various inventors to commercialize the incandescent light bulb. Although Thomas Edison was eventually able to solvethe problem, his insistence on using the low voltage parellel system of power generation and distribution, or direct current, was the reason he lost the Niagra Falls Power Generation contract to George Westinghouse in 1883. He chose to ignore Nicola Tesla's, a former employee of his, much superior polyphase system, or alternating current. A move which literally cost him millions of dollars in lost revenue as a result.
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lasertekk
146 Comments
Re: the bigger they are
Thanks for the history lesson. But I'll stick with my original thought;
And?
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phoenix
172 Comments
Re: the bigger they are
As far as cryptic remarks go, lasertek, your post certainly ranks right up there. If, however, it was actually meant to clarify your position on the subject, would you mind actually completing the thought?
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