Just as the future started to look bright for solar power, prospects for some solar manufacturers have dimmed. The reason? Overcapacity in the manufacture of components is likely to cause a sudden shake-up for an industry that has been used to demand for its products consistently outstripping supply.
Shortages of silicon, the core component of photovoltaic technology – the conversion of sunlight to electric current – have plagued the solar industry for several years, keeping component prices high and frustrating demand. This fuelled a rise – some analysts say a bubble – in solar stocks.
