Greentech Media: The Two Futures for Solar
Posted on Apr 08, 2010 |
Is solar a commodity?
Actually, the reality is worse than that.
Photovoltaic panels are complex semiconductors that require advanced manufacturing processes and a continual stream of innovations in efficiency, packaging, encapsulants, electronics and mounting. In many ways, it's as unlike a commodity as you can get.
Yet, because of a wide array of manufacturers and a proliferation of solar know-how, solar panels are subject to commodity-type pricing. Put another way, solar manufacturers have to behave like chip makers and medical device manufacturers when developing their products and then fight over every penny like makers of copper tubing, corn syrup or gravel when it comes time to sell them. It's tough work for an often meager reward.
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