As each sunbathers can attest, good things, overdone is not good. For example, politicians who advocate of "green jobs" welcome the decline in the price of renewable energy, because only with competition in price,the industry can gain market share without government subsidies from the fossil fuels . However, prices of photovoltaic solar panels was reduced so quickly, some people feel uneasy. this year it has fallen by about one-fifth, from the 2008 it has dropped nearly two-thirds. The reason of decreasing prices is overcapacity of polysilicon and finished panel as well as low production costs in China. Over the past few days, US-based Evergreen Solar Inc. (Evergreen Solar) filed for bankruptcy protection, Germany's Solon also said it would lay off 15 percent in the country and close a factory in the United States.
The industry is not in crisis, but it is difficult to obtain robust development, especially in areas outside China.MAC Solar EnergyIndex6 solar stock index fell more than one-third. People against subsidies for green industry are holding a gloating attitude towards the closure of Evergreen Solar. They pointed out that Evergreen Solar closed a factory at the high cost of Massachusetts  and 800 jobs will be transferred to China, and this plant was just built up a few months ago after receiving $ 58 million fund from government. However, even if panel prices are reduced, it is still risky to reduce subsidies to end-users. Look at a few of the world's leading solar market distribution, you will find that their geographic distribution and sunny weather conditions have little relationship,but with the subsidies "climate" ,it would be closed. Germany reduced solar feed-in tariff and similar subsidies, the reduction in the intensity of Spain is even greater, and these two countries are the major solar markets.
Lux Research predicts that by 2016, subsidies will lead to lower sales of solar panels ,it will reduce to about 15% from 65% within the past five years. Price pressure means that revenue will be flat during this period in U.S. dollars or even decline in 2012 may be.The good news is, Lux Research predicts that by 2016, the lower solar panel prices and the rising cost of conventional electricity, will make photovoltaic electricity with business competitiveness in some areas.