SolarWorld, Sharp Solar positioned to survive consolidation

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Consolidation is coming to the solar industry.

Analysts say smaller solar companies will be pushed to consolidate to survive a market squeeze. But SolarWorld, Sharp Solar and Sun Power Corp. are among those companies expected to survive the current slump.

A report by Reuters cites analysts at Swiss Bank Sarasin saying that rapidly dropping prices for solar systems will require small solar companies to be acquired to survive.

The report identifies China-based Suntech Power Holdings Co Ltd, Trina Solar and Yingli Green Energy Holding Co. as good bets to survive the slump — along with U.S.-based First Solar Inc. and SunPower Corp. and Germany's SolarWorld AG.

SolarWorld's Hillsboro-based U.S. operation is currently leading a trade complaint against China to protest what the company sees as artificially cheap solar panels. Chinese officials are calling the campaign a move toward "trade protectionism."

But the Reuters report points out that there are a number of smaller Chinese solar companies that are now feeling the pinch. Chinese officials are pushing toward the creation of two larger solar companies and a handful of medium-sized solar businesses.

The report also identifies Sharp's Solar Energy Solutions Group, based in Camas, as another solar player likely to benefit from an established name and the deep pockets of its U.S. parent company, Sharp Corp.

Eric Hafter, Sharp Solar's senior vice president, said the company's iron-clad warranties are attractive to consumers.

"The reason they are coming back – and they are coming back very strongly – is the recognition that our warranty is absolutely inviolate," Hafter told Reuters. "It's been a huge advantage for us lately."

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