Solar Stocks Eclipsed - Plunging prices will hurt makers of solar power cells this year
[R]apidly falling prices for photovoltaic systems amid fierce competition for customers during the recession as well as scarce financing for new projects [is leading to] solar buyers putting off their purchases, guessing that they can get the same amount of power for less money if they wait a few months, writes Deutsche Bank solar analyst Steve O'Rourke in a recent report. There are several types of solar cells on the market, and some manufacturers can claim higher efficiency, but solar power is a basically a commoditized business. Customers buy based on the price per watt of installed power. As the recession cuts into corporate spending on technology, prices look set to fall from $2.50 a watt to $2.00 in the next few months, to just $1.85 by next year, predicts O'Rourke.