Solar panel inventory building up rapidly

iSuppli estimates solar panel production will grow by 14.3 percent in 2009, to 7.5 gigawatts. However, the bad news is that only 3.9 gigawatts worth of installations will take place this year, nearly half of all solar panels produced this year will be stored in inventory as demand collapsed due to the decision by Spain to change its feed-in tariff policies.

iSuppli predicted that the inventory glut will have a long-term impact on the solar business, with panels set to remain in a state of oversupply until 2012. Then, it is likely that fast-growing demand for solar installations will be able to absorb global panel production and inventory.

iSuppli said it has updated its solar panel production forecasts, from 20,2GW to 17,2GW in 2012 and predicted that it will amount to 19,7GW in 2013. More generally speaking, supplier production will flatten for the years from 2011 to 2012.

More info at EE Times.