US Solar Market Feeling Effect of Supplier Shakeout

The US solar market continues to reel from the failure of US based panel manufacturers. Besides the headline company there are several others that have closed under the pressure from Chinese manufacturers. Between the lower cost labor and rare earth resources Chinese suppliers are driving the market.

When the economics of solar are looked at the efficiency is not there for the dollars expended. If it were not for government subsidies the market would not exist at all except for the companies or people who do not measure costs in money alone. But the marketplace can help increase the efficiency by continuing to chase out the inefficient products as better ones are made. The question is when will this reach a critical point. It appears to be many years away.

Comparative advantage will be one deciding factor on where the manufacturing will take place. At this time the US does not have any advantage over other countries.

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