Monday, December 08, 2008

Solar energy may face dark future

The solar energy industry may face a challenge of a downturn, despite it seems to be a thriving business months ago.

Tumbled oil price, global recessions as well as supply issue cast clouds over the solar industry with an uncertain outlook.

Although news released frequently that solar plants will be built, yet major solar company in China and Canada warned that they'll pull back on expansion plans and preserve cash after customers canceled projects and credit markets dried up, according to Cox News Service.

Further more, the cost of solar energy is still higher than the cost of generating electricity about two or three times, in despite of the advanced technology, dropped price of raw materials and tax stimulus, said a solar and electrical engineering expert.

Industry analyst predicted that there may soon be a worldwide glut of solar panels and silicon -- the key ingredient for solar cells -- amid the industry's recent buildup.

As a result of the recent buildup of the solar industry, the supply of silicon for solar panels will outstrip demand by 2010, driving down prices sharply, market research company iSuppli predicted that.

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