Solar firms scramble before European subsidies expire

A rush to get solar projects installed in Germany and Italy before lucrative subsidies are reduced is straining supply in the United States.

“If you want anything before July 1,” said Mark Lerdal, CEO of San Francisco-based MP2 Capital, which finances and develops solar projects, “you’re going to have a really hard time.”

The expiring subsidies have the biggest solar manufacturers, like Suntech Power Holdings, whose U.S. headquarters are in San Francisco, and San Jose-based SunPower Corp., struggling to capitalize on the temporary boom in those countries, while keeping customers in the U.S. and other markets happy.

“Right now at Suntech, what we’re encountering is more demand than we can supply modules for globally,” said Suntech America President Steve Chan. “So we’re basically having to fight for module allocations between the U.S. and North American region and the European markets within our company.”

While global supply continues to outpace demand for solar modules, Suntech and SunPower — whose panels are most frequently used in the world’s largest solar projects — are consistently sold out.

Read the full story in the San Francisco Business Times.