Seeking Alpha
Disclosure: I am long YGE.
In the next three articles, I will try to give you an introduction to the solar industry from both macro and micro points of view, as well as predict how the solar industry will look in the next few decades. I think the solar industry is in the midst of a historical turnaround, and market dynamics are changing fast. In late 2010, the solar industry tumbled into a chasm, and now it is climbing out. I think that in the mid- to long term, the solar industry will grow tremendously.
In this article, I will provide a brief introduction to the basics of solar technology. I will then describe the supply chain. Finally, I will discuss the supply and demand sides of the market.
Solar Companies' Gross Margins, 2010-2013 "The Chasm"
Source: SEC Filings.
As solar companies climb out of the above-mentioned chasm, they will meet a different solar market than the pre-2010 market. But before we get to the complicated task of thinking about the future, I would like to make you more familiar with the solar industry.
The Technology
Solar technology, also referred to as solar photovoltaic (PV) technology, requires the use of solar panels-but what are solar panels, anyway? You may have seen solar panels on houses or buildings over the past few years, as the global rate of installing solar panels has been growing at a steady pace.
Solar panels capture sunlight and transform it into electricity. They are made mainly out of polysilicon (I will not discuss CdTe solar technology in this article).
The process of manufacturing solar photovoltaic panels
Polysilicon is made from sand. Silicon is the second most abundant resource in the Earth's crust (after oxygen). In the Czochralski process, polysilicon ingots are grown.
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