Head of the study, Wolfgang Hummel, stated that the main problem for German cell and module manufacturers is that they are generally too expensive. In other words, German technology is too costly. Hummel goes as far as to predict that in the future all solar panels, like televisions and computers, will come from Asia.
Despite the initial quality question, Chinese PV manufacturers like Suntech, LDK Solar and Yingli have cleared their hiccups and are now in grasp of the quality of their solar panels. In total, with national financial aid and lower labour costs, the Chinese companies are delivering panels at costs up to 20 percent cheaper than their German counterparts.
Hummel’s computation shows that 50 percent of newly installed modules in the first half of the year in Germany came from China as opposed to the twelve percent that came from German factories.
Frank Asbeck, CEO of SolarWorld, warns of a mass extinction of the German solar industry. According to a press statement he gave to German magazine, Wirtschaftswoche, he states that a further reduction in the solar subsidies in Germany would be a rather destructive move.