Photovoltaic news and pv jobs

Solar naysayers are missing the big picture

06. September 2010 By:  Brandon Mitchener

Good morning from the EU PVSEC! I can't help but start a week of blogging from the trade show with a call for perspective: this morning's issue of Handelsblatt, Germany's leading business newspaper, has a downbeat article titled "Looking gloomy for solar kings." The message seems to be that the solar industry has seen its peak, as governments question the price of solar support systems and new competitors enter the market and mix it up.

The problem is that this article only looks backward. Yes, profits in the industry might have been higher before. Yes, feed-in tariffs used to be more generous. Yes, we're beginning to see the "Revenge of the Fossil Fuels" play itself out. But let's face it, there is still plenty of life in this industry - a look around PVSEC this week in Valencia proves it. Plenty of companies are still making lots of money, technology keeps improving, costs keep falling, and most importantly, the market is getting bigger, not smaller!

The U.S. solar market is just beginning to take off. China is still at the starting gates. Australia is taking off. The Mideast is showing interest. If you look at the long-term perspective of the industry, it seems pretty clear that the only way is up. The question, of course, is will everybody still be along for the ride?

The HB article quotes a financial analyst as saying there are only two real strategies: cost and quality leadership. He cites a few examples of companies in which one obvious is missing (guess which?). While it's hard to argue with cost and quality, I can't help but thinking that market strategy is also pretty important. People need to be where the markets are, selling products that are competitive in those markets.

That's not just a question of cost and quality but also marketing, distribution and financing, among other factors. Don't let the German gloom get you down, it's sunny in Valencia and I can't help but think the solar sector is healthier than the fates of a few German companies might suggest.