Who’s Destroying Profitable Solar Companies?

By R.T. Jones, Green Chip Stocks:

Yesterday, we learned that SolarWorld was blaming its Chinese peers for its recent outlook cut.

I’m still convinced that while the Chinese absolutely do have somewhat of an “unfair” advantage, launching trade wars isn’t the answer.

Yes, the China advantage has destroyed dozens of once-profitable solar companies. But this is the evolution of the industry – and companies operating in this space can’t rely on government bodyguards to keep them afloat. And to be honest, not all non-Chinese solar companies are running for cover.

In fact, Conergy (PINK SHEETS:CEYHF), a Germany solar player, just announced that it had its biggest gain in three months after posting its first operating profit in nearly two years. CEO Philip Comberg said, “It clearly shows that our strategic realignment and improved cost structures yield results.”

There’s no doubt that non-Chinese solar companies have a tough road ahead. But it will be those companies that seek solutions, instead of excuses, that will prosper. Of course, the uphill battle for solar companies still remains… Read more

 

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2 comments

  1. Great post! Thanks for sharing. I think saying that non-Chinese solar companies have a tough road ahead, but thinking about people wanting to buy American products and with regulations being enforced, American solar power manufacturers will be able to handle this struggle and come out on top. I’d rather purchase something that was well made and will last a long time versus something that will fall apart shortly after purchase; and with the high cost of solar panels, that is definitely not somewhere you want to skimp and end up throwing your money away.

    1. Thank you Liz for your insightful comment. Your sentiments are shared by consumers across the board, after all cheap is always expensive!

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