As feed-in-tariff rates fall and manufacturers continue to add capacity while announcing significant price decreases, margins will suffer. One would think that an industry that suffered unprofitability until 2004 would take heed—and one would be right.
Optimism aside, the industry knows that its fortunes rise and fall on the availability of incentives—note the mad dash to sell and install right before an announced tariff degression. These days, the strongest growth driver is degression anxiety. Given the rapid pace of degression announcements, not to mention the potential of caps hanging over some of the industry's strongest markets, an industry-wide prescription for anti-anxiety medication might be in order.
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