Capacity conundrum: Happy consumers, worried suppliers

Good news for consumers: there’s more c-Si capacity coming online. Bad news for suppliers: there’s more capacity coming online.

July 12, 2011 – And the capacity news just keeps on coming. In a Tuesday afternoon session on c-Si, Yingli announced that their 2011 year end capacity will be 1.7GWp, roughly 10% of 2010 global shipments. Note that more than one manufacturer (indeed, more than three) will be at roughly the same capacity levels.

With incentive levels decreasing and capacity and inventory levels rising, downward pressure on prices will continue and margins will continue to be constrained. At this point, unfortunately, buyer expectations have been set for ever-lower prices. It is great news for shoppers — and not so hot for those who make things.

Paula Mints is principal analyst, PV Services Program, and director in the energy practice at Navigant Consulting. E-mail:

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