Massive inventory buildup and Chinese competition could put half of all U.S. solar manufacturers out of business next year, according to a market research firm.
The report from The Information Network said inventory is averaging 122 days in 2009 versus 71 days in 2008.
Further, it reports that production has dropped to 27.9 percent of potential capacity in 2009 from 48 percent in 2008.
“As many as 50 percent of the more than 200 solar manufacturers, mired in red ink with current selling prices above $2 per watt, may not survive,” the report said. Making matters worse, lower cost products from China are projected to drop to below $1 per watt in 2010 and 50 cents in 2011.
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