Solar Power Glut

energy forever, clouds reflected in solar panels, originally uploaded by mikeporcenaluk.

Next year production of solar panels my exceed demand.

POZNAN, Poland (Reuters) - The solar power sector will produce an over supply of solar panels in 2009, said Zhengrong Shi, chief executive of the world's biggest module manufacturer Suntech.

"We expect definitely an over supply of modules next year," he told Reuters in an interview, adding Suntech expected its euro-denominated prices to fall by 10-15 percent next year, by 25-30 percent in dollars, compared to the third quarter of 2008.

"The financial crisis has accelerated that situation," Shi said. The entire sector could halve the cost of solar power before 2012, he added, assuming companies cooperated on cutting prices across the supply chain.

The price of solar coming down is great news. The cheaper the panels, the faster the payback.