According to foreign reports, Axiom Capital executive director and senior equity research analyst Gordon - Johnson that the world is facing solar battery panels capacity is serious excess , this may lead to solar panels and photovoltaic companies stock price fell.
Johnson pointed out to the end of 2011, global production capacity of solar battery panels from 2010 to about 40 GW (gigawatt) increased to 61 GW up and down. On the other hand, even the most optimistic estimates, only 20 GW of demand this year, Johnson says.
Therefore, he predicted the profitability of the PV sector will drop substantially, recommended investors sell shares of solar energy. He told CNBC: “We are in a structural oversupply in the market, the price is still much to fall, and we think this will put pressure on corporate profits, the PV, they will have a downward revision in the second quarter results . ”
Although prices have dropped, Johnson does not think that demand will rise. He said it was because of the lack of flexibility of the industry’s needs in the short term will not change. Solar technology is a long-term investment, investors will be waiting for prices to be reduced to a minimum and stabilized only after the investment money to come.
Although the nuclear crisis in Japan raise everyone’s optimism for clean energy, solar energy demand would not be a raise, said Johnson case. Because nuclear power is baseload power, can provide continuous low marginal cost of energy, while solar power is the peak load, intermittent electricity is provided, and a higher marginal cost.
Johnson said: “I think this is a great misunderstanding of the investment community. Can not use solar energy to replace nuclear power, you can not use intermittent power to replace baseload power, understand the utility of any such person will tell you.
