Targeted Strategies for Today's Evolving Markets

MissionIR Blog

Evergreen Solar Inc. (ESLR) See’s Solar Order Backlog Swell to $3 Billion

Getting “new” technologies off the ground and to market is a difficult process, even when the new technology has been available for some time. In many instances, government help is needed to coax along a promising technology if it appears to be in the common good. How that coaxing is applied can vary from region to region, but one thing is sure; if the technology is sound, it will find its footing in a market regardless of government help. The free market rewards those that find the right time, and more importantly, place to take advantage. The investor that can do the same will profit the same.

Evergreen Solar Inc., a solar panel cell developer/manufacturer and marketer, works to offer solar cells, in appropriate configurations, to residential and industrial value-added resellers, integrators and distributors. The company recently received an order for $1.2 billion from German solar panel company IBC Solar. In effect, this order increases the company’s order backlog to $3 billion through 2013.

Although the majority of the company’s business is derived from just five customers, it has a solid presence along the entire solar panel manufacturing process. Generally, this is because the company was initially oriented toward developing the silicon wafers within the photovoltaic cell – an initial photovoltaic cell process. The remaining steps of manufacturing the panel module were simply a matter of completing the process – a process that works best with the company’s strip cell manufacturing process.

Although the company is finding successes in the US market for solar panels, a majority of its sales are generated in Europe. In all likelihood, this will remain unchanged as the evolutions of alternative energy sources find their place around the globe. The US market for solar looks appealing at the moment, but with the understanding that government subsidies are in flux and will likely not aid in the penetration of solar within the US market. This is not to suggest that solar is less of an option in the US, but rather that government is not as friendly toward the development of these types of markets as European and Asian governments appear to be. Evergreen Solar, however, has staked its claim to the global marketplace and does appear to be a solid player within this market for some time to come.

Let us hear your thoughts below:

This entry was posted in Small Cap News. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *