Speaking in the worldwide context, the solar industry has again suffered another blow with a report outlining that one of the world’s biggest and most renowned cells and panel manufacturers is in the process of filing for bankruptcy. (Source: http://www.bbc.co.uk/news/business-17587830) 
Q-Cells, a German company who once took the title of worlds largest solar cell manufacturer, has been unable to resurrect it’s recent flagging sales and poor financial run and have reportedly filed for bankruptcy with the hope of trading out of it. This follows down the track of other manufacturers like Solon, Evergreen and Solyndra (just to name a few) that have been unable to find away up from the massive worldwide downturn in solar sales and the subsequent glut of below cost modules that now flood into every market around the world.
With the worldwide shift to renewable energy and generous feed-in tariffs offered over the past few years, the industry had grown to what some may have perceived as an unsustainable level. Dramatic changes in incentives and a general oversupply of solar power equipment have left a glut in the marketplace that was always going to have negative effect on the solar industry. This overall downward shift has been felt in ripples across the world – not just in European markets.
These international changes and failings are also coupled in the Australian domestic market with companies quietly exiting the market – taking with them warranty backup and overall system support. Over the past 12 months – 2 of Australia’s largest solar sellers (as well as many more smaller local players) have hit massive financial difficulties and have gone bust or been heavily re-structured. It’s expected that these bankruptcies will not be the last, as nation-wide we are exposed to massive boom and bust trends – which doesn’t allow for natural sustainable long-term growth within the renewable energy sector.
So how do potential solar customers know if a company is in it for the long haul or maybe headed for disaster? Here are some starting tips to help you have confidence in choosing a system that’s best:
- If it seems to good to be true it probably is. The lower then low price deals currently advertised in the market only promote a short-term prospect for product quality and support. Ask yourself why it’s cheaper? Cost cutting in the product quality, after-sales support and installation tendering can mean that it appears cheap now but is expensive to maintain down the track.
- The history of the company is the most important thing. Not only the company you buy the panels from but also history of the manufacturer. You can access the financial records of large, publically listed manufacturers but for many the company’s stability comes from diversity and products outside of the renewable energy field. If solar is just one of the products they sell, then they may not be so exposed to the bumps in the industry along the way. A solid history can also mean a very long term vision overall – at least a lot further then the cash grab that can be experienced with rebates and industry incentives.
- Don’t skimp on the inverter! More and more we are hearing about cheap inverters unexpectedly shutdown and the when the customer enquires about getting it sorted – they are unable to find the company they bought the system from or a helpful manufacturer located locally. The influx of cheap inverters has been a contributing factor to the downfall of local companies that imported in equipment with no testing or experience in the varying Australian climate and if the company goes, the warranty goes with it.
- Ask lots of questions – There are many great resources for helping you to understand the differences in systems, histories, reputation and overall results so you can make an educated purchase and enjoy the benefits of solar for many years to come.
If you would like more details or information on any of The Solar Guys products or services – Click Here to contact us.
