Solar Competition in a Darwinian Marketplace
04/09/2013 1 Comment
Arno Harris, CEO of Recurrent Energy, a developer of large utility solar projects was asked by Russell Gold, energy reporter with the WSJ about bankruptcies among solar energy companies.
This was his response.
“Nobody wants to see that kind of trouble, we think about jobs lost, it’s extremely painful. However, you have to put it in context. This is fundamentally a very exciting transformation This is an industry that in the last 10 years has taken the cost of solar panels from $5 per watt to around $.50 per watt. As result of this transformation, it has moved solar power from one of the most expensive sources of electricity to one of the second or third least expensive sources of electricity.
Inevitably, a part of that process is going to be the creation of a very Darwinian, challenging environment, in which those who cannot keep up with the cost structure necessary to stay competitive are going to get restructured, fall by the wayside, get reabsorbed.
We have to put this event in that context. There are numbers of solar manufacturers demonstrating they do have cost structures that work in today’s prices. So that means that this industry can continue to deliver solar electricity at increasingly competitive costs.”