According to some market specialist the supply of photovoltaic panels may climb to almost triple the level of demand in 2011, flooding the market and potentially crashing the price.
“It could be Armageddon,”
Manufacturers have realized record sales for solar panels in 2010 as developers swarmed to connect them to the grid and benefit from subsidized power prices before the rates were slashed by governments in Germany, Italy and the Czech Republic. According to Johnson, in Germany, the globes largest solar panel market, demand is set to dramatically drop as the government cuts rates that producers earn by 13%, causing a major glut in the market, thereby driving the price that manufacturers charge down to as low as $1.10 per watt from previous highs of around $1.80 per watt this year, Milton Financials was advised.
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