Tuesday, May 15, 2007

Solar Energy Industry Gross Margin

Please see below the current gross margin for the different sectors in the solar energy industry:

To produce polycrystalline silicon: over 80%
To produce ingot and slice: about 25%
To produce solar cell: 18%
To produce solar module: 5%

While about 3 years ago, the gross margin for the sectors in the solar energy industry was quite different, please see below:

To produce polycrystalline silicon: 30-40%
To produce ingot and slice: about 40%
To produce solar cell: 35-40%
To produce solar module: 15-20%

The polycrystalline silicon suppliers control the whole industry, and they are happy to see the feedstock shortage, and they raised the polycrystalline silicon price and enjoy the high margin.

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