Falling silicon prices pressure thin-film solar

LOS ANGELES/TOKYO (Reuters) – A collapse in silicon prices threatens to put the heat on solar panel makers that use little of the material, such as Japan’s Sharp Corp and even low-cost industry darling First Solar Inc.

Spot prices on the solar industry’s key raw material, polysilicon, have halved since January, giving a leg up to solar panels that rely heavily on the material.

Thin-film solar panels, made with little or no polysilicon, are starting to lose their competitive edge over China-made silicon-based modules, which are more efficient in transforming the sun’s rays into electricity.

“First Solar is still the undisputed leader, but finally, someone’s competing with them,” said Macquarie analyst Kelly Dougherty. Intensifying price competition is making scale all-important, hurting the chances of start-ups, she said. “If this trend continues, I wouldn’t be surprised if just a handful of thin-film companies are left.”

Reuters