What a difference a year.
At the end of 2010, a solar panel manufacturers have been exhausted, Germany had been gobbling up a record number of clean energy and new markets have been growing steadily.
Now, the erosion of support in Germany and Italy, the world's two largest markets, and growth in the production of panels that convert sunlight into electricity has left the industry awash in flooded and equipment to drive the panel declined about 35 percent this year.
This is good news for consumers and distributors who purchase solar modules, but left reeling manufacturers to reduce their profit margins and its shares fell to multi-year low.
Some companies have gone bankrupt, including Solyndra, whose disappearance after receiving $ 535 million in government loans caused a scandal in Washington, many politicians question whether the federal government should continue to support the industry.
The industry a black eye and a dark panel manufacturers market are key factors of the Solar Power International Convention, the largest collection of solar activity in the United States, which is scheduled for Monday in Dallas.
More than 1,200 companies expect to be ready to exhibit their products, each fighting for market share in an industry that is growing increasingly competitive.
"You can walk around, and the SPI group of companies that are out there this year, not next year," said Rob Stone, an analyst at Cowen & Co.
The solar analysts are quick to point out a young sector is now weed out the weaker companies, and that energy prices are rapidly approaching parity solar electricity from fossil fuels, which is crucial to reduce the need for government subsidies.
Helping to stimulate growth in the U.S., where facilities can be doubled this year to more than 1.5 gigawatts.
THE COLLAPSE OF THE ACTION
However, the damage to profit margins and stock prices has been severe.
First Solar, the leading producer of low-cost industry, saw its share fall from 57 percent so far this year. They hit their lowest level in more than four years last week.
The U.S. actions rival SunPower Corp, in which the oil giant Total SA acquired a majority stake earlier this year, fell by more than 30 percent.
If a China-based manufacturers, the pain is acute.
Suntech Power Holdings and Trina Solar fell by 70 percent this year, Yingli Green Energy for more than 60 percent and JA Solar Holdings almost 73 percent.
But no country is solar manufacturers have been so hard hit by plummeting prices in Germany, by far the world's largest consumer of solar energy.
Q-Cells, the world's largest producer of solar cells, it is now difficult to meet refinancing needs, and began earlier this month that may delay its convertible bonds, maturing in February 2012.
Conergy and Solon were both forced to restructure, and last week, the developer Phoenix Solar has issued a profit warning.
Some critics say that German industry relied on generous subsidies for too long and was caught by surprise when the German government began to cut the strength to support the sector more profitable.
But it was largely Italian move to reduce subsidies that dampened much of the demand in the first months of 2011, analysts said, and led to a sharp increase in stocks of many module manufacturers.
In an effort to generate cash and reduce inventories, panel makers began aggressively selling the excess supply in May, June and July, pushing prices down sharply panel.
"They had no credit to cover working capital," said Theodore O'Neill, an analyst at Wunderlich Securities in New York.
"If you do not know the inventory of the color you want to say the sky is falling".
Fall in panel prices have not stimulated a lot of new demand, according to Cowen, stone, and the growth of real consumption may be several months away.
"It may well take until the second quarter of next year," he said.
Still, stocks sell off the sun seemed to be fully reflected in the poor environment in which the majority of the shares of companies trading below their tangible book value, Stone said.
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