It’s no secret the domestic solar industry is struggling.
Earlier this year U.S. company Abound Solar filed for bankruptcy after receiving a Department of Energy loan under the same program as two other companies that went belly-up, including Solyndra.
All kinds of circumstances surrounded the bankruptcy. A criminal investigation is ongoing to see if the DOE had knowledge of problems with Abound’s panels before the loan was distributed.
But what most people will focus on as the main cause of solar disruption isn’t this particular example of failed solar subsidies…
Abound went under pointing a finger at Chinese competition.
Eliminating the Competition
Abound is not a unique situation; many failed solar firms have raised a white flag to China.
And companies that haven’t filed for bankruptcy (yet) are struggling…
Cheap panels are hurting panel makers; even cheaper panels from China have made things worse.
This week the U.S. Commerce Department decided after a year-long investigation to uphold tariffs between 18% and 250% on Chinese solar panel makers that are receiving “unfair” subsidies and selling panels below market price. Some of the larger companies will be paying tariffs of around 30%; others will have to pay upwards of 200%.
And yet these tariffs still might not be able to provide a life ring for domestic manufacturers…
Prices are still low. Companies that were feeling the pain from these low prices before won’t get relief simply because Chinese companies are out of the mix.
As Nick Hodge explained earlier this week, failing companies are a sign of a maturing industry. The strong survive, while the weak are phased out.
Installations have gone up in the last few years, and they will continue to do so — regardless of tariffs on China’s solar sector.
Preparing for a Bubble
Japan has been struggling to come up with a new energy mix ever since the Fukushima disaster caused it to reevaluate its nuclear program…
A new feed-in tariff offers major support to renewables.
This week Japan’s Ministry of Economy, Trade and Industry revealed that of the 1,780 megawatts in renewable projects it had recently approved, 83% were solar.
That being said, I’ll remind you of Jeff Siegel’s warning earlier this week:
Sure, over the next two to three years, solar momentum in Japan will be strong. But I agree with Sumitomo management in that Japan’s aggressive solar moves look eerily similar to those moves of previous bubbles in the solar space.
So if you’re looking to hitch a ride on Japan’s solar push, I’d suggest you ride that wave now — and get out early — just to avoid getting sideswiped by a potential solar bubble.
So, how do we identify the companies that will make it in this turbulent industry?
How do we know which ones will survive a Japanese solar bubble burst?
Which firms will muddle through, despite cheap solar panels in the U.S.?
The same rules apply with solar as any other industry: The companies that evolve will be the ones to survive — and prosper.
Simply put, this means adopting to changes in technology.
As panels become more efficient, the companies that obtain and utilize — or develop — this technology will surge, while those that drag their feet will eventually drop off.
This company is way ahead of the game. It will provide all the major solar panel manufacturers with the most efficient, lowest-cost panels available…
And while Wall Street waits around to see which panel companies turn their luck around, you have the opportunity to get in right at the source: This little-known solar tech company is all you need.
Good investing,
Brianna Panzica
for Energy and Capital
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