Carbon Tax Is the Solar-Cell Manufacturers' Hidden Hope

Experts say that there might be a glimpse of hope for the solar-cell manufacturers. It appears that the carbon tax policies could play an essential part in stimulating the demand for renewables.

This year was a tough one for companies which operate on the unstable market of earth-friendly alternatives. The solar industry was challenged by the negative effects of incentive cuts made by Europe governments, which have triggered oversupply and lowering prices.

Despite the fact that governments might preserve their current position regarding the development of renewables, customers might rely on clean solar power to satisfy their energy demand, in order to avoid paying the carbon tax.

The decrease of the prices of solar cells didn't have the expected effect upon the demand. According to the experts in this field of activity, “affordable” failed in turning into “profitable” for the major players in this field of activity.

The lack of governmental support, China's fierce competition on an international level, as well as the customers' lack of interest towards this eco-friendly sector are decisive factors which made the companies cut prices by up to 30%.

It might seem like all sales are final, as enterprises find their pockets empty nowadays, but experts forecast that this path will be maintained at least by the end of this year, when they anticipate 40-50% discounts.

Eco-installations based on solar cells which display a solar conversion efficiency below 16.8% will most likely be unable to maintain their current price and will become even more affordable.

At this point in time, solar systems with conversion efficiencies in the range of 16.2-16.4% cost approximately $1.02-1.10/unit (0.743-0.801 euros), while systems reflecting a 15.8-16.0% conversion rate are worth $1.00/unit (0.728 euros).

The manufacturing companies located in Germany and the UK hoped that their products will increase their popularity due to expected incentive cuts.

Despite this predictions, progress is still far from being visible in this area of activity, since the demand is still low. While dealing with the present situation, companies fear for their future profit margins, which will continuously decrease unless all the enterprises that operate in this industry join efforts to reestablish the balance.