Solar Failures 2009–2013: Case Studies
Jenny Chase
Chapter 13 in Solar Power Finance Without the Jargon, 2019, pp 85-98 from World Scientific Publishing Co. Pte. Ltd.
Abstract:
It’s always easy to point at mistakes made by executives and companies with the benefit of hindsight, but the people managing solar manufacturers after the 2008 crash in global prices were in a very difficult situation. The selling price of modules was often below the cost of production, and the main way to improve cost of production is by expanding production volume and setting up new, technologically advanced factories. The economically logical alternative, simply to shut down until the module price went up, would probably be the end of the company as competitors would continue to expand and bring their costs down. Large firms which had invested in their brand were unwilling to do this. About the only good way forward for manufacturers was to start developing and building their own solar power plants, to capture some of the margin they were losing to competition on module sales…
Keywords: Climate Change; Energy Economics; Solar Power; Renewable Resources; Sustainable Technology; Finance (search for similar items in EconPapers)
JEL-codes: G20 G30 Q01 Q40 Q43 (search for similar items in EconPapers)
Date: 2019
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