Robert Castellano

Solar Cell Manufacturers Have Room to Grow

Can't figure out your math. If the world produced 3.8 GW of solar cells in 2007, why are you trying to turn a yearly revenue into another yearly revenue by multiplying by 365 days and 7 hours, when it is already in years?

Secondly, 3.8 GW is the consumption (sales). If the capacity was 12.4 GW, how can you say solar cell manufacturers are capacity constrained when in fact there is 3x more capacity than was sold? And don't look for any catch-up. Capacity is far outstripping demand, which is growing 40% per year. It seams that we are hearing of new companies starting up on a daily basis.

In addition, there are 100 Chinese companies making solar cells and aabout half as many companies in India will be in production in 2010. With lower production costs there than in the U.S., Europe, or Japan, competitive forces will drop the price of solar cells and thereby eat the bottom line. That should impact public solar cell manufacturers.