Cut Down Solar Prices, You Will Win


Solar energy will become the most appreciated way out for every one of us as it is used to generate power to replace biofuels which most countries in the world are still using for power generation. However, there is a loophole in developing this new business. So, what’s that? Obviously, it is the solar prices.

In spite of solar energy’s green way of generating power, people today or in the future must care about more of their own profits and well beings than other factors which even a country like the US or China is trying to promote. From this way to think further, a solar material manufacturer should get an idea: price must be the topmost concern.

However, to create a PV solar system is not only to produce some solar panels, racks or wires, but to manufacture high quality PV solar inverters. You see, they are key in converting the direct current generated from sunlight into alternating current that each family uses everyday. As a solar material manufacturer, what you need to do is obvious: cut your these materials’ prices. In a market, businesspeople in the field always fiercely compete with one another on price, and many of them compete even in vicious ways. But in the solar energy industry, you cannot do it like that.

Keeping an eye on the global solar market, one should know that solar panels’ prices are decreasing rapidly compared with the past years due to large scales of production and shipments. This is a good phenomenon for consumers, while it may not be so nice for a manufacturer. Now either the US or China is offering incentives to this industry, but this will never last long. Helped by this opportunity, a producer needs to do more things. Cut down the prices of your solar commodities, trying to meet the demands of different customers.

According to my personal knowledge of this industry, the profits in solar materials are not bad. So, how to persuade customers to buy your products not others? Yes, one should design and produce excellent solar products, I think, especially solar inverters, for they are the soul in a solar PV system. A manufacturer needs money to sustain his factory or company, so he needs profits. How to get them? You don’t have to charge labor in installing the system, and you even don’t have to charge so much the solar panels installed on a rooftop. So, charge what? Charge the inverters and their accessories!

However, probably developed counties and developing counties are different in labor payment. In the US, the UK, Australia and the Netherlands, labor price must be very high. In China or India, labor will not be that expensive. Therefore, take different measures to deal with different special problems. For one company in a developed country, large scales of production and shipment might be more favorable than lowering labor payment.


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