Folks are optimistic and believe things will change for the better in the realm of the German’s solar industry. However, due to the stiff competition and the constant pressure in price, this hope among the majority is probably going to be thwarted and replaced with pure optimism.
‘The mighty has fallen…’ many are keen to say that in respect to the fall of German. They used to be at the summit of the solar-energy sector. They accounted for a 20-percent share in the global solar-energy industry but now their total share stock stands at mere 6-percent. This is expected to cause job retrenchment due to the rapid decline in the recent months.
It hasn’t been this gruesome in the past. This is what the German solar Industry Association head Carten Körnig mentioned in the opening of Intersolar, the world’s largest solar-energy trade fair, in Munich. It is a really a shock.
Price is the main factor for this outcome.
These staggering losses have been a result of significant decrease in the price.
China, on the other hand, has been doing great in developing its solar industry. In the month of March 2011, it announced that solar energy is a paramount market for them and even included it in their five-year economic plan. Chinese companies operating in the sector get substantial loans and special privileges for the production of solar materials. For instance, in the recent decade, the market has grown by 50 percent.
Chinese’s solar panels might see tariff imposed, when sold in Germany.
In the last years, there have been a high rate of import of Asian Solar modules to Europe. The main reason for this trend is indeed its cheap price.
In US, the US Department of Commerce has already been able to apply tariffs on Chinese’s solar panels, amounting to 250 percent. This will definitely help local business to operate efficiently.
Some advantages have been experienced in the German industry due to the expansion of the Asian solar market. For instance, Wolfgang Hummel, coming from the German Centre for Solar Market Research said that the increase in investment in solar energy in 2011 was mainly thanks to Asia.
He adds up to say that although Germany is currently being faced with the burden of sending engineers to other countries. The Asian countries are catching up in this area which the Germans are at the moment behind. Asia is up-to-speed getting to develop the engineering industry at an alarming rate.
The pressure caused by Asian competition is not the only reason the German’s solar industry has been affected. The reduction in subsidies has also brought the industry down.
On the other hand, The Chinese solar-energy market is alarmingly high in success.