The solar industry is in grave quarter as falling government subsidies and low volumes to lower prices further in a time machine that oversupply has led many players in the industry to reduce its forecast annual profit.
A rebound in demand for solar panels, which is expected by industry players for the second half, did not materialize, carrying several U.S. companies, manufacturer Solyndra panels above all, to declare bankruptcy in recent months.
European players have been cutting their views on the fall in demand in Germany, including SMA Solar, manufacturer of the world's No. 1 solar inverters and solar energy leading company in Europe by market value.
"We will see a whole set of sad result," said Thiemo Lang, portfolio manager at Sustainable Asset Management, owner of Yingli Green, Canadian Solar and Trina Solar shares from July.
"The industry is currently suffering from oversupply, combined with demand still in silence, putting pressure on prices would be. The companies report very poor margins and / or losses from high-priced inventories ( you) have to work through now, "he said.
In problems
Suntech China, the world's largest manufacturer of solar cells is expected to report much larger than expected loss in the third quarter, according to StarMine equity firm research, which gives more weight to analysts' forecasts more historically accurate.
The company expects to release results in mid-November.
"Q3 volumes have not picked up as expected, despite the favorable rates of return given the low average selling prices. The main reason seems to be the issues of funding and projects postponed due to expectations of lower prices "said Deutsche Bank analyst Katja Filzek.
Norway's Renewable Energy Corp to be the first major player to the report, expected to post third-quarter earnings on Oct. 26. The best players in Germany, including SMA, Centrotherm and SolarWorld, are due in the first half of November.
Cooling demand in Germany, the largest market for solar energy, has beaten particular industry, which still depends on government subsidies to survive. While solar installations accounted for 45 percent of the world in 2010, this share could halve this year, the industry association EPIA said.
The problems of the sector is a large-scale trade war that erupted last week when the solar western companies increased efforts to secure the rights of rigidity imposed on products manufactured in China solar energy. The outlook for Western energy companies solar is really sad, Financière de l'Echiquier fund manager Frederic Plisson said.
"The companies are in trouble now and will be more in a few years," he said. "(To them) will be very difficult to compete with emerging companies."
A rebound in demand for solar panels, which is expected by industry players for the second half, did not materialize, carrying several U.S. companies, manufacturer Solyndra panels above all, to declare bankruptcy in recent months.
European players have been cutting their views on the fall in demand in Germany, including SMA Solar, manufacturer of the world's No. 1 solar inverters and solar energy leading company in Europe by market value.
"The industry is currently suffering from oversupply, combined with demand still in silence, putting pressure on prices would be. The companies report very poor margins and / or losses from high-priced inventories ( you) have to work through now, "he said.
In problems
Suntech China, the world's largest manufacturer of solar cells is expected to report much larger than expected loss in the third quarter, according to StarMine equity firm research, which gives more weight to analysts' forecasts more historically accurate.
The company expects to release results in mid-November.
"Q3 volumes have not picked up as expected, despite the favorable rates of return given the low average selling prices. The main reason seems to be the issues of funding and projects postponed due to expectations of lower prices "said Deutsche Bank analyst Katja Filzek.
Norway's Renewable Energy Corp to be the first major player to the report, expected to post third-quarter earnings on Oct. 26. The best players in Germany, including SMA, Centrotherm and SolarWorld, are due in the first half of November.
Cooling demand in Germany, the largest market for solar energy, has beaten particular industry, which still depends on government subsidies to survive. While solar installations accounted for 45 percent of the world in 2010, this share could halve this year, the industry association EPIA said.
The problems of the sector is a large-scale trade war that erupted last week when the solar western companies increased efforts to secure the rights of rigidity imposed on products manufactured in China solar energy. The outlook for Western energy companies solar is really sad, Financière de l'Echiquier fund manager Frederic Plisson said.
"The companies are in trouble now and will be more in a few years," he said. "(To them) will be very difficult to compete with emerging companies."
