The market for solar power is going through a bit of a crunch lately, with many of the companies that opened less than five years ago, all thinking that solar power was the next big thing, poised on the edge of bankruptcy.
Strangely enough, the market for solar power has been growing over the last five years. Unfortunately, the growth hasn’t been smooth, but marked by start-stop growth that has made it impossible for companies to predict what way the market was going. Coupled with a massive over capacity on the production side – especially in China – has meant that many companies have fallen on hard times.
Another problem has, according to this article from Reuters, been that the world’s energy markets are currently flooded with very cheap natural gas.
One of the latest casualties was the German company Solar Millennium. The fact that several German companies are currently struggling it particularly worrying for the industry, as Germany remains the biggest market for solar power in the World.