We’ve already talked about the perils of low-cost solar and why you should be cautious of what you buy. Now let’s learn the impact of this unfortunate trend within the global solar industry.
For starters, China’s attempt to capitalize on the current solar gold rush has recently backfired. In 2011, too many new Chinese solar panel manufacturers flooded the market, resulting in a glut of low-quality products, not to mention a serious price crash as producers fought to keep their factories running. In 2012, 27% of Chinese of those solar panel manufacturers went out of business.
To add to the financial disaster, the US and European Union have accused China of using government subsides to “dump” solar panels on the market for less than it cost to manufacture and ship them. The European Union has started a trade investigation into solar panel imports from China worth $26.5 billion, while the US recently imposed tariffs from 24 to 36 percent of nearly all Chinese imported panels.
Don’t get discouraged by the bad news, though. Over-manufacturing and lowball pricing are early indicators of an industry with huge demand and growth potential (this happened with the burgeoning steel industry of the 1960s and 70s). Besides — the recent $2-2.5 billion deal between SunPower and Berkshire Hathaway is a strong sign the industry is headed to a higher ground.
Fortunately, RevoluSun has always been above the fray thanks to our partnerships with reputable panel manufacturers — most notably SunPower — and lifelong commitment to quality, integrity and the highest value. And while there will always be cheaper and less superior solar solutions to choose from, keep in mind the old adage — if it’s too good to be true, then it probably is.