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The solar industry took another blow last week. Evergreen Solar stocks were downgraded by major investment firms, and subsequently fell further to less than $1.50 per share.
Evergreen’s fall may be having the most direct effect in its home state
of Massachusetts, but this decline is representative of a wider fall in solar stock prices, leading to both cutbacks in solar jobs and lower panel prices.
For Evergreen Solar, a bastion of solar industry success in Massachusetts, the twin problems of lower prices and oversupply influenced a recent decision to shift assembly of its solar panels to China, where the company says it can produce for $1.50 per watt. It is as yet unclear how many jobs in Massachusetts will be lost, although of the 577 or so current full-time employees, over half are involved in manufacturing.
Oversupply and weakened demand have forced a scaling-down of U.S. operations by several solar industry players. In terms of manufacturing, China continues to gain momentum due to lower labor costs and less barriers to implementation. In terms of innovation, the United States continues to compete, even lead. But it nevertheless remains cheaper to manufacture overseas and have products shipped back to the States than to simply make them closer to the point of use.
