The Solar Panel Manufacturing industry has experienced sunny days during the past five years. Generous government incentives for energy product manufacturers and downstream solar power generation firms have buoyed revenue. As a result, IBISWorld estimates that industry revenue will grow at an average of 29.0% annually to $4.1 billion in the five years to 2012, with a 5.0% increase expected in 2012. Further, a growing market for solar worldwide has resulted in industry expansion. US producers have stepped up to the plate and exported solar panels and cells to buoying markets abroad. Low-cost production from China will weigh on industry revenue, since these players can undercut US players by offering lower prices. Nevertheless, revenue is projected to grow steadily during the five years to 2017.
The Solar Panel Manufacturing industry has experienced sunny days during the past five years. Generous government incentives for energy product manufacturers and downstream solar power generation firms have buoyed revenue. Downstream solar power generation firms buy solar panels from industry operators. According to industry analyst Justin Molavi, “without government subsidies, solar power generation firms would have a hard time competing against traditional energy-generating sources.” With incentives in place, downstream customers are demanding solar panels at an increasing pace. Furthermore, falling silicon prices have enabled US manufacturers to compete with low-cost manufacturers abroad. As a result, industry revenue is anticipated to grow at an average of 29.0% annually to $4.1 billion in the five years to 2012, with a 5.0% increase expected in 2012.
A growing market for solar worldwide has resulted in industry expansion. Countries like Germany, Spain, Italy and China have taken a proactive approach to renewable energy by enacting legislation that provides healthy incentives for solar power producers. Molavi says “this trend bolstered global demand for solar panels and products.” US producers have stepped up to the plate and exported solar panels and cells to buoying markets abroad. However, these trends have begun to reverse. Many European countries that are facing debt crisis have pulled back on renewable energy incentives, hurting the industry's growth prospects. Additionally, US producers still compete with low-cost solar manufacturing in China, resulting in heavy price competition among global players. These trends caused some industry players to exit, as they found it hard to compete with low-cost panels and shrinking demand from Europe. The most dominant firm in the industry is SunPower, but Suntech Power Holdings, First Solar and Sharp Corporation also hold market share.
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The Solar Panel Manufacturing industry has experienced sunny days during the past five years. Generous government incentives for energy product manufacturers and downstream solar power generation firms have buoyed revenue. Downstream solar power generation firms buy solar panels from industry operators. According to industry analyst Justin Molavi, “without government subsidies, solar power generation firms would have a hard time competing against traditional energy-generating sources.” With incentives in place, downstream customers are demanding solar panels at an increasing pace. Furthermore, falling silicon prices have enabled US manufacturers to compete with low-cost manufacturers abroad. As a result, industry revenue is anticipated to grow at an average of 29.0% annually to $4.1 billion in the five years to 2012, with a 5.0% increase expected in 2012.
A growing market for solar worldwide has resulted in industry expansion. Countries like Germany, Spain, Italy and China have taken a proactive approach to renewable energy by enacting legislation that provides healthy incentives for solar power producers. Molavi says “this trend bolstered global demand for solar panels and products.” US producers have stepped up to the plate and exported solar panels and cells to buoying markets abroad. However, these trends have begun to reverse. Many European countries that are facing debt crisis have pulled back on renewable energy incentives, hurting the industry's growth prospects. Additionally, US producers still compete with low-cost solar manufacturing in China, resulting in heavy price competition among global players. These trends caused some industry players to exit, as they found it hard to compete with low-cost panels and shrinking demand from Europe. The most dominant firm in the industry is SunPower, but Suntech Power Holdings, First Solar and Sharp Corporation also hold market share.
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