iSuppli Corp, the global leader in technology value chain research and advisory services has reported that the lower demand for solar energy components has lead to massive over supply. Average inventories throughout the solar supply chain soared by 64.3%, which has led to sharp price reductions. iSuppli reported that the average days of inventory among solar module and cell makers, and vertically integrated vendors rose to more than 121 days in the first quarter of 2009, up from 74.2 days during the same period in 2008. Unfortunately solar providers recently invested billions in new facilities, forcing them to produce in order to cover these new fixed costs. This in turn will produce addition price erosion. iSuppli expects to see inventories in the supply chain to rise throughout 2009 and continue into 2010.
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