After many US solar firms filed bankruptcy unable to compete with the low prices of Chinese manufacturers, one of the Asian giant’s own fell from grace on March 20. Suntech was once the world’s largest solar panel manufacturer, but it defaulted on a $541-million US bond payment on March 15. However, it’s unlikely that the Chinese government is going to easily let a foreign firm take over one of its biggest renewable energy companies.
This is a very big turn for Chinese solar manufacturers whom relied heavily on government subsidies. German firms could be one of the most interested parties. In December, Germany’s SMA Group added Chinese inverter Jiangsu Zeversolar New Energy Co., Ltd. to its assets to venture into China’s PV sector. And while it would be interesting to see if American firm First Solar looks into a possible takeover, the solar war between China and the US will most likely play a major role. In 2010, the US imported $2.4 billion worth of solar panels from China, according to the Solar Energy Industries Association. However, with the increased number of failed US solar firms, Western governments – led by the US – began a campaign to place duties on Chinese imports to compensate for unfair financial support China provides to its solar industry. But if China is looking for another local to help out rather than a government bailout, the next best option might be Yingli Green Energy Holding Co.
Suggested Reading:
Failing US Solar Companies Question Government Loan Guarantees
Chinese Solar Battle Reaches Europe
Another US PV Firm Falls Despite Backing from Oil Companies
Make sure you visit and click ‘Like’ on our Facebook page to receive even more news and updates from Alternative Energy Africa.