CoolPass: Suntech Power Holdings CEO expects a temporary glut in the Solar panel market.

March 3, 2011 - PRLog -- Zhengrong Shi, head of the Chinese solar panel giant Suntech Power Holdings recently told CoolPass that he foresees an impending global supply glut of solar panels but added that he expected this to be temporary.

In 2010, the company sold over 50% of its production of solar panels to customers in Europe, a figure which Shi said he expected to drop slightly in 2011.

Shi told CoolPass that in 2010 around 10% of the company’s production was sold in Italy and he saw that figure remaining the same for this year.

Recently there has been significant investor concern over an expected revision of solar subsidies in Italy after huge growth in the solar power sector in 2010.

Investors in solar stocks worry that a substantial drop in government support could lead to an oversupply of panels, which in turn will force prices down faster than expected and could then negatively affect manufacturer’s profits.


"Temporarily, oversupply will occur," Shi told CoolPass, adding that it may occur as soon as in this year. He did however also highlight that lower prices on solar panels would spur demand.
"Once oversupply occurs the price will be reduced and demand will increase too," Shi said.

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