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BY Tali Aaron : April 29

Market Analysts Fear Solar Profits Will Drop Despite Recent Surges in Sales

solar market analysis


Although solar energy companies reported strong sales the first quarter of 2010, analysts are predicting a downturn on future solar profit margins. The surge of 2009 sales was sparked in countries like Germany and Italy by federal programs offering healthy incentives for solar construction. But these government subsidies are ending this year, and this new growth will subsequently be curtailed. Western companies will now have to compete with low-priced solar products being mass produced in China.

China, however, is also worrying investors since much of their production of solar components had to be outsourced to meet their quotas. Theo O'Neill, an analyst for Wunderlich Securities, predicts that the average price of solar modules could drop twenty percent by the end of 2010 because "... there's too much supply ... panel prices are falling."

The Wilderhill Clean Energy Index, which is composed of green energy companies, has experienced a 5.3 percent drop, compared to a rise in the S&P 500, which has gained 9.2 percent. Market analysts are not predicting that the market will rebound fast enough to deal with the excess supply that has been generated as a result of subsidies.

9 Responses to Market Analysts Fear Solar Profits Will Drop Despite Recent Surges in Sales

  1. buildaroo on January 13, 2012 at 10:22 am


    Market Analysts Fear Solar Profits Will Drop Despite Recent Surges... http://t.co/HXXamXRD #eco #cleantech #greenbuilding #renewableenergy

  2. buildaroo on September 13, 2011 at 8:21 am


    Market Analysts Fear Solar Profits Will Drop Despite Recent Surges... http://t.co/s29Wy4V #eco #cleantech #greenbuilding #renewableenergy

  3. buildaroo on August 15, 2011 at 1:31 pm


    Market Analysts Fear Solar Profits Will Drop Despite Recent Surges... http://t.co/pMxcTqx #eco #cleantech #greenbuilding #renewableenergy

  4. buildaroo on February 18, 2011 at 7:04 pm


    Market Analysts Fear Solar Profits Will Drop Despite Recent Surges... http://bit.ly/93lb8L #eco #cleantech #greenbuilding #renewableenergy

  5. buildaroo on February 18, 2011 at 1:01 pm


    Solar Panel Stocks In For Bumpy Ride; Stocks Drop due to Weak Demand... http://bit.ly/cTa9GL #eco #cleantech #greenbuilding #renewableenergy

  6. alternatyvienergija.lt on May 2, 2010 at 12:44 pm


    Nors saulės energija bendrovės pranešė išaugusių pardavimų pirmąjį ketvirtį 2010, analitikai prognozuoja ateities saulės pelnas nuosmukio.

  7. Randy Thompson on April 30, 2010 at 2:41 pm


    Market Analysts Fear Solar Profits Will Drop Despite Recent Surges ... http://bit.ly/aThble

  8. solarchoiceheat on March 2, 2010 at 2:10 am


    RT @buildaroo Solar Panel stocks drop due to Weak Demand & Over-Supply http://bit.ly/bexOPN #renewableenergy #cleantech #eco #greenbuilding

  9. Building Green on March 1, 2010 at 9:58 pm


    Noooo! RT @buildaroo: Solar Panel stocks drop due to Weak Demand & Over-Supply http://bit.ly/bexOPN #greenbuilding

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