Solar Companies May Have Dim Future

: Chris Lee Law Firm

  Filed under: News

solar bankruptcyThere have been big advances in products for our homes and cars that fit the “green” lifestyle.  Recycled roof materials and solar panels have been making their way to the front of the roofing industry.  With the money saving benefits of solar panels, many homeowners have jumped on board with installing these environmentally friendly products.

Solar panels have brought many homes and businesses away from the dependence on traditional energy sources like electricity. Despite the increased demand for such cost effective products, the lights are going out on many solar companies.

High Demand And High Debt?

Many solar companies based in the U.S. and Europe have been working to keep the doors open, let alone make a profit. We know the demand for solar panels is there, so why are so many companies either in debt or in bankruptcy?

Two of the largest manufacturers of solar panels in the U.S., SpectraWatt and Evergreen Solar, filed for bankruptcy earlier this month. Both are claiming unmatched competition from China as the biggest contributor to their financial troubles. American manufacturing has been facing stiff completion out of China for years, we simply cannot match their costs; leaving many companies with few options.

Both companies worked diligently to keep themselves out of debt and issuing paychecks. Unfortunately, the cost cutbacks and layoffs were not enough to save the companies. The state of the economy has also taken a toll on the fate of solar companies as the price of solar panels dropped again this past quarter, leaving many companies with diminishing profit margins. Consumers will continue to look for solar technology, the question is, whether there will be any American based suppliers.

 

 


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