Last month Chinese solar panel making company, Suntech Power filed for bankruptcy. And it seems it’s not the only solar panel manufacturer heading into trouble, with bankruptcy fears looming for a multitude of solar panel makers across the globe. Innovation in the industry has also taken a decisive dip as a compound effect of the industry depression.

Instead, companies are focusing on finding and creating ways to reduce instalation costs and minor improvements to increase the output of power solar technology.

So what’s the problem?

Simply, the market is flooded. With an oversupply of solar panels and improvements to solar cell designs and manufacturing, the price of solar panels has fallen significantly, yielding very little profit in comparison to the total cost of solar power.

One of the world’s largest solar panel makers, Trina Solar announced recently changes they had made to their solar panels, making them thinner and lighter which makes them easier to install. Another company, QBotix develops solar panel systems that are aimed directly at the sun throughout the day, therefore increasing power production at a lower cost. Hanwha Solar recently invested in OneRoof Energy that offers payment plans for solar power, while potentially increasing the market share with lower costs and greater convenience.

But these improvements will be on hold until the oversupply corrects itself naturally with the closure of competitors. Right now, supply is exceeding demand, and the catch up could take well over a year.

[Source: Technology Review]