Market Forces To Weed Out Solar Companies

Economic downturn is expected to weed out some of the weaker companies in the solar sector, but which ones will continue to grow and which will be composted?

Investors that chose correctly could benefit from the down market to build strong equity positions.

Reuters interviewed a number of analysts on this topic, and one of the prevailing notions was that U.S. and European solar companies that have long-term polysilicon supply contracts have a significant advantage over companies in China that have been relying on the spot market for polysilicon. 

As solar prices begin to come down with increased supply, the size of a company’s margin is going to become even more important. 

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