Chinese Solar to Expand Capacity for PV Production (JASO) (YGE)
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Solar is not going away, and solar firms are expected to increase capacity for production to capitalize on the opportunity.
For better or for worse, crude oil is only a finite commodity that will eventually dry up. Taking millions of years to produce, it will be a long wait until the next set of dinos gives us a taste of the addictive fossil fuel. (Though it should be noted that synthetic fuels are curently under development to meet transportation needs. Companies like Solazyme (Nasdaq: SYZM) are currently working on the technology. Big oil like Exxon Mobil (NYSE: XOM) and Valero (NYSE: VLO) are surely on-par as well.)
But solar power will continue to gain traction as an alternative source to wind and water power as homebuilders (and possibly automakers) evolve.
Though photovoltaic (PV) prices have come down as of recent, and countries continue to trim subsidies for the expensive technology, solar companies would be smart to make investments now to drive down costs later. According to Digitimes, that's what solar producers in China are aiming to do.
High-efficiency PV manufacturers like JA Solar (Nasdaq: JASO), Yingli Solar (NYSE: YGE), Renesola (NYSE: SOL), and others, are continuing to plan for capacity expansion, at least through 2012. The number planning for expansion is down from previous years.
This expansion will help high-efficiency PV makers to escape from price wars. According to Digitimes, "high-efficiency solar cells using technologies such as mono-like and metallization wrap through (MWT) have been developed by well-funded China-based integrated solar firms with the technology transfer from international firms for years," though they caution, "mass production and cost control of such solar cells still pose as problems."
Some firms have been developing MWT cells that achieve a conversion rate of 19 percent, and many are developing mono-like solar cells (you can read more on the difference between mono and multicrystalline cells here).
Both JA Solar and Yingli are up early Thursday, while Renesola is down before the bell.
For better or for worse, crude oil is only a finite commodity that will eventually dry up. Taking millions of years to produce, it will be a long wait until the next set of dinos gives us a taste of the addictive fossil fuel. (Though it should be noted that synthetic fuels are curently under development to meet transportation needs. Companies like Solazyme (Nasdaq: SYZM) are currently working on the technology. Big oil like Exxon Mobil (NYSE: XOM) and Valero (NYSE: VLO) are surely on-par as well.)
But solar power will continue to gain traction as an alternative source to wind and water power as homebuilders (and possibly automakers) evolve.
Though photovoltaic (PV) prices have come down as of recent, and countries continue to trim subsidies for the expensive technology, solar companies would be smart to make investments now to drive down costs later. According to Digitimes, that's what solar producers in China are aiming to do.
High-efficiency PV manufacturers like JA Solar (Nasdaq: JASO), Yingli Solar (NYSE: YGE), Renesola (NYSE: SOL), and others, are continuing to plan for capacity expansion, at least through 2012. The number planning for expansion is down from previous years.
This expansion will help high-efficiency PV makers to escape from price wars. According to Digitimes, "high-efficiency solar cells using technologies such as mono-like and metallization wrap through (MWT) have been developed by well-funded China-based integrated solar firms with the technology transfer from international firms for years," though they caution, "mass production and cost control of such solar cells still pose as problems."
Some firms have been developing MWT cells that achieve a conversion rate of 19 percent, and many are developing mono-like solar cells (you can read more on the difference between mono and multicrystalline cells here).
Both JA Solar and Yingli are up early Thursday, while Renesola is down before the bell.
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