Published Date : Apr 20, 2016
Solar power is touted by analysts as the most promising green-energy technology of the future. There are reasons for the masses to believe this positive forecast. The rate at which the global solar power market is witnessing development and is being adopted by the masses across the globe; the number of technologies and innovations aimed at improving efficiency and power production capacity of solar panels continuously entering the market; and the vast amounts of government subsidies being offered to researchers, manufacturers, and buyers of solar power cells all hint at how impressive the market’s growth in the near future would be.
The market is also witnessing the influx of a large number of companies producing conventional string or centralized solar PV systems as well as the innovative module-level power electronics (microinverters and power optimizers), and along with the rise in purchasing choices, the prices of these systems are constantly dropping. The scenario is great for the consumer and is leading to an increased level of receptiveness.
This will no doubt help the global solar power market in gaining better prospects for growth in the foreseeable future. But there is one issue that is challenging market vendors operating in the global solar power market: the higher prices of generating solar power and the unsustainable scenario despite vast government support in the form of subsidies. Latest to come in the wrath of the unfavorable operating environment is SunEdison Inc., one of North America’s largest solar energy companies. Reports state that SunEdison is planning to file for bankruptcy this week.
The bankruptcy of SunEdison gives an evidence of how the solar energy sector in the U.S. is also headed towards an economic collapse after the oil industry suffered a blow after oil prices reached a record low across the globe in the past year.
SunEdison, Inc. had its market valuation pegged at US$10 bn just over nine months ago. In the present scenario, the company’s valuation has dropped down to US$117 mn. Company’s shares have lost over 98% of their value over the past 12 months.