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Solar thin-film maker ECD shutters production

Post Time:Nov 11,2011Classify:Company NewsView:231

 

A glut of solar panels and crushing prices have made life difficult for solar manufacturers this year, and bad news keeps coming. Longtime solar thin-film maker Energy Conversion Devices, which has factories in Michigan, Canada and Mexico, 

 

The Michigan-based company said it needs to stop production because it has made more solar panels than it can sell. The company only 

 

While many solar companies experienced big jumps in sales and profits in 2010, Energy Conversion had to implement cost-cutting plans and 

 

It no doubt experienced greater setbacks when, earlier this year, reports about low demand in Europe — the world’s largest solar market — and a pileup of unused solar panels in warehouses 

 

Energy Conversion’s shares fell 35 percent to reach $0.40 per share in recent trading.

 

Questions have long been raised about Energy Conversion’s ability to survive. The company’s amorphous-silicon solar panels, sold under the Uni-Solar brand, are far less effective than silicon solar panels, and that makes its products unattractive in markets where government subsidies are written to reward projects that can generate as much as electricity as possible. It therefore has to make them cheap enough to make up for the lower efficiencies, something that First Solar does with its cadmium-telluride solar panels. Even here Energy Conversion hasn’t delivered. For its 2011 fiscal year, which ended in June, the company posted $305.4 million in losses on $232.5 million in revenues, compared with $457.2 million in losses on $254.4 million in revenues for fiscal 2010.

 

Energy Conversion’s selling point is that its solar panels are pliable thin films without the use of glass as a protective layer. That design can be attractive for projects that require lightweight equipment and want to forgo the use of mounting systems, though those features serve specific needs for rooftop solar. The pliable thin films also find uses in consumer gadgets and military equipment.

 

The company isn’t the only one hurting. Many manufactures have filed bankruptcy (Solyndra, SpectraWatt, Evergreen Solar), while others have 

 

Source: http://gigaom.comAuthor: shangyi

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