Q-Cells, which is currently the world’s largest solar cell producer, cut its outlook today and said that its market would stay soft well into the next year. As a result of their profit warning, solar cell stocks were all hit hard today. The CEO of Q-Cells, Anton Milner said that they have recently received a “flood” of customer requests asking Q-Cells to delay deliveries until next year. Q-Cells also said that they were now going to have a production shutdown over Christmas.
What does all this mean? The financial crises, coupled with the sharp drop in oil prices over the last couple of months, has led to a shortfall in funding for alternative energy projects. As a result it looks like the expected growth in solar production, which was expected to hit 5 gigawatts in 2008, probably will slow in 2009. On the other hand, prices for solar cells are expected to decline, which, if you’re looking to buy, may not be such a bad thing.