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Casting a Harsh Light On Chinese Solar Panels

New submitter Eugriped3z writes with an article in the New York Times that "indicates that manufacturing defect rates for solar panels manufactured in China vary widely, anywhere from 5-22%. Secrecy in the terms of settlements negotiated by attorneys representing multi-million dollar installations perpetuate the problem by masking the identity of unscrupulous or incompetent actors. Meanwhile, Reuters reports that unit labor costs in Mexico are now lower than in China."

149 comments

  1. Yeah, not just that by 50000BTU_barbecue · · Score: 5, Interesting

    I have a harsh light for their ability to read a PO. We ordered a thousand amorphous panels for a toy and we asked for 4mA in full sunlight except they shipped .4mA panels. They added a decimal to our spec and that was it. And it cost just enough so it's not worth pursuing further, just start over.

    --
    Mostly random stuff.
    1. Re:Yeah, not just that by h4rr4r · · Score: 4, Insightful

      So you paid before you got a sample? or the first delivery?

      That seems fraught with peril.

    2. Re:Yeah, not just that by syntheticmemory · · Score: 5, Informative

      Then there is the issue of Quality Fade. The first shipment is good, after that, it just gets crappy.

    3. Re:Yeah, not just that by h4rr4r · · Score: 1

      Sure, but again some sort of escrow system could deal with that. Money only gets released as parts pass QA.

    4. Re:Yeah, not just that by swalve · · Score: 1

      I know a lot of companies that pull that same shit. "Making the vendor fix the problem will cost too much, just throw it away!" It makes me crazy. At some point, damn the cost and make them do what they said they would do. It's not an economic issue, it's a quality control issue. Vendors will try to get away with whatever they can. What happens next time when they slip something through that you don't notice? Your customers get fucked.

    5. Re:Yeah, not just that by SJHillman · · Score: 2

      Businesses are in business to make money. There's not a lot of money to be made in standing by principal, so the best you can do is never use that vendor again. If enough customers do that, the bad vendor will suffer and fail. Of course, the exception is if your vendor is the only one that can deliver what you need, then it (usually) makes sense to fight with them. This really doesn't seem like one of those times as there are plenty of other solar panel vendors.

    6. Re:Yeah, not just that by Anonymous Coward · · Score: 0

      Standing by [a] principal can be quite profitable -- if you pick his/her pocket. Standing by principle, however, is often not profitable.

    7. Re:Yeah, not just that by bagofbeans · · Score: 1

      I've come across quite a few self-described 'Principle Engineers' too. Perhaps they operate on a different moral level?

    8. Re:Yeah, not just that by Anonymous Coward · · Score: 0

      That self-description probably means they are engineers... in principle.

    9. Re:Yeah, not just that by router · · Score: 1

      Fscking hilarious, when I got business cards at my last job the Administrative Assistant (secretary with title creep) who I was forced to use misspelled it that way. I caught it as soon as I looked at them, thank dog. Then again, almost no one at that place paid any attention at all to what they were doing.

      andy

  2. Mexico! by amiga3D · · Score: 4, Insightful

    There ya go. At least it's made in North America then. We need to help the Mexicans out anyway what with the Cartels wearing them out and all. Let's buy some from our neighbors.

    1. Re:Mexico! by h4rr4r · · Score: 3, Insightful

      If we want to help with the Cartels we need to end the war on some drugs. That is what funds the majority of these folks operations.

    2. Re:Mexico! by Anonymous Coward · · Score: 0

      Yes, but where are those rare earths coming from to make the panels? That's what needs to be fixed - quickly.

    3. Re:Mexico! by lesincompetent · · Score: 1

      We need to help the Mexicans out [...]

      You mean "help" like the american foreign policy of the last 60 years or so "helped" other various countries in the same continent?

    4. Re:Mexico! by lesincompetent · · Score: 1

      That's what needs to be fixed - quickly.

      You mean "fixed" like the 2003 iraq "fixed"?
      Ok enough USA bashing for today. :p

    5. Re:Mexico! by h4rr4r · · Score: 3, Informative

      Mountain pass mine, in California.

      The Chinese were allowed to dump these on the market and kill off our mines at one point. I would hope we would not be stupid enough to let them do that again. Sadly I know we would.

    6. Re:Mexico! by unixisc · · Score: 3, Funny

      It solves another issue as well. We have limitless illegal immigration from Mexico. Once they start making things there, Americans can retaliate by illegally immigrating to Mexico, and working in their solar panel plants. Also, so far, bilingual education in schools hasn't done much good, but if more Spanish speaking Americans move to Mexico to take these jobs, it would have done some good. As far as the cartels go, they can then move to China - the market there is 4 times that of the US.

    7. Re:Mexico! by Anonymous Coward · · Score: 0

      Rare earths? Solar panels are made of silicon

    8. Re:Mexico! by h4rr4r · · Score: 1

      Doubtful, they can get all the weapons they want via other routes. Not like south america has a shortage of AKs.

    9. Re:Mexico! by Anonymous Coward · · Score: 0

      We need to help the Mexicans out [...]

      You mean "help" like the american foreign policy of the last 60 years or so "helped" other various countries in the same continent?

      "Helped" as in the American Middle Class.

    10. Re:Mexico! by Salgak1 · · Score: 1

      Yeah, the Mexican Cartels prefer US-spec semi-auto AKs to full-auto Chinese AKs that also cost much less ?? Of course, it didn't help that the vast majority of those "exports" were done at USGov request. . . .

    11. Re:Mexico! by drinkypoo · · Score: 1

      The story of the Mexican TDIs should be enough to put you off that solution.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    12. Re:Mexico! by Salgak1 · · Score: 1

      Well, they COULD be coming from California, but the regulatory environment has had that mine shut down until very recently. Because, after all, it's OK to out-source pollution, as long as we don't see it HERE. . . .

    13. Re:Mexico! by Chris+Mattern · · Score: 2

      We have limitless illegal immigration from Mexico.

      Actually, no, we don't. Immigration (legal and illegal) from Mexico has fallen very sharply in the past five to seven years. It is thought that net immigration from Mexico to the US may already be in negative figures.

    14. Re:Mexico! by magarity · · Score: 1

      Americans can retaliate by illegally immigrating to Mexico

      Sneaking into Mexico isn't like sneaking into the USA. On their southern border their army shoots illegal immigrants coming from Guatemala on sight.

    15. Re:Mexico! by bill_mcgonigle · · Score: 1

      At least it's made in North America then.

      I had a good GE dishwasher, so when it died after 20 years I got another one. It was from Mexico and was out of here after 3 years, after several major parts failed.

      I used to buy Carhartt jeans. The ones I have from the early 2000's are faded but usable. The ones I bought from the late 2000's are all gone - they moved operations and cotton to Mexico and none of those jeans lasted more than a year before the fabric fell apart.

      It may be coincidental in that the companies looking to cut way back on quality are the ones moving to Mexico, so maybe it's not Mexico's fault, but the metric for a product consumer is the same - avoid stuff made in Mexico. Perhaps if the company is itself based in Mexico that should be re-evaluated.

      --
      My God, it's Full of Source!
      OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
    16. Re:Mexico! by saider · · Score: 1

      Not pure silicon. They are doped with various materials, often rare earths, in order to get the properties needed for the application.

      If I recall, a PV is essentially a diode with the junction exposed to sunlight. The light hitting the cell creates a electron/hole pair, which accumulate to become the voltage that can be sent to a load.

      --


      Remember, You are unique...just like everyone else.
    17. Re:Mexico! by unixisc · · Score: 1

      But on their northern border, would they dare shoot Americans?

    18. Re:Mexico! by rasmusbr · · Score: 1

      I could be wrong, but I remember learning that most silicon cell designs don't require particularly high quantities of scarce elements compared to most thin film cells, or that it is at least perfectly possible to make a decent silicon cell without large quantities of scarce elements. Rare earth metals are reasonably cheap today, so it's not really a problem in the short term. It's also likely that there are enormous finds waiting to be found on the third world and under the ocean floor.

      The problem with silicon as far as I understand it is that it takes a lot of complex machinery and a lot of time to make high quality wafers.

      A factory can be thought of as a series of tubes (seriously!) with materials going in through tubes at one end and product flowing out through a big tube at the other end. If there is a stage in the production process that takes a lot of time then that means that "tube" has to be really long, which in reality means you need lots of machines working on that stage, which means more cost.

    19. Re:Mexico! by TheLink · · Score: 1

      But how do those funds get to those folks? Courtesy of Wachovia, Bank of America, HSBC etc.

      http://www.bloomberg.com/news/2010-06-29/banks-financing-mexico-s-drug-cartels-admitted-in-wells-fargo-s-u-s-deal.html
      http://www.guardian.co.uk/business/2013/may/23/hsbc-court-threat-money-laundering-charges
      http://www.bloomberg.com/news/2013-03-31/money-laundering-banks-still-get-a-pass-from-u-s-.html

      It's not so easy to transfer BILLIONS of dollars if those banks and their friends didn't help. There's blood on the hands of those who laundered the money for the drug lords. But only the small fry are going to jail.

      So what is the war about really?

      --
    20. Re:Mexico! by TheLink · · Score: 1

      I have a bunch of socks from the 1990s that are still usable though a bit threadbare. And I have socks that are 1 or 2 years old that have lost their elasticity. They are all the same brand, probably made in different places but I don't think it really matters where it's made. All the companies probably figured they'd make more money if they gradually stopped making socks (and other stuff) that lasted 20 years... I guess I'm one of those weird people who doesn't lose their socks on a regular basis.

      The other thing is I see very cheap jeans on the market but they are really ugly. One might think it's because fashion and tastes change, but the nicer looking ones exist and they are more expensive.

      Thing is the chinese etc can copy the nicer looking ones just as well as they copy the ugly ones. So I think they are just doing most of this on purpose - differentiation etc.

      --
    21. Re:Mexico! by Anonymous Coward · · Score: 0

      They have in the recent past, so there is no reason to believe that they wouldn't now. Besides, they'll ask for money first and then blame it on the cartels if the body is ever found.

    22. Re:Mexico! by Grishnakh · · Score: 2

      We need to help the Mexicans out anyway

      No, we don't. Business-wise, Mexicans are a complete PITA to deal with. I've dealt with people from Europe, China, Canada, and Mexico (and of course the US), and the Mexicans are completely goofy. Everything with them is a giant hassle; a simple transaction that should take 4-5 emails ends up taking 100 emails back and forth. I even had some Mexicans (at a fairly large manufacturing company, not individuals) buy from me by Paypal, then within minutes file a non-receipt dispute. WTF? At this point I don't really want any more business from Mexico.

    23. Re:Mexico! by Anonymous Coward · · Score: 0

      Correct. It has been negative for the past few years since job opportunities in Mexico are more available than in the US. The Mexican middle class is growing by leaps and bounds. Friends have said there are plenty of cases of families in Mexico sending money to their impoverished relatives in the US that have been impacted by the rotten economy. Illegal immigration from other parts of Latin America is still a net positive into the US, ironically because of Mexico's harsh immigration & border policies.

    24. Re:Mexico! by Anonymous Coward · · Score: 0

      The original ones were GaAs, but today we can either go GaAs for high efficiency or use cheap polycrystalline silicon

      where 'cheap' means 'using equipment that the semiconductor industry already bought years ago to make 1000nm chips'

    25. Re:Mexico! by unixisc · · Score: 1

      Oh, cool, that's just one scenario I didn't paint above, but this is good too - US workers should migrate to Mexico & work in their solar plants, and send the bulk of their income back home to the US to feed their families. Also, since Mexico claims 'Aztlan' territory and that's one reason they treat their illegal immigration to the US as legal, such US workers could reverse the argument and say that since they are 'Aztlan' residents, they are citizens of Mexico and therefore perfectly within their rights to go to Mexico proper and work. It would be fun seeing the barefaced hypocrisy of the Mexican government - not that it hasn't been seen before during Vincente Fox.

    26. Re:Mexico! by ebno-10db · · Score: 1

      the regulatory environment has had that mine shut down until very recently

      True, but the problematic regulatory environment is in China, not the US. We might be price competitive if we were willing to live in a toxic waste dump like much of China (plenty of Chinese are unhappy about that) but not otherwise. I'd be good with adding tariffs to imports of both raw materials and goods made with those materials to compensate. "Free trade" is an economist's simplistic fantasy and a politicians code phrase for "you're screwed".

    27. Re:Mexico! by ebno-10db · · Score: 1

      If only a rare earth mine were the biggest thing we let them kill off. Remember when some things were manufactured in the US? It wasn't that long ago.

    28. Re:Mexico! by ebno-10db · · Score: 1

      Maybe we should thank the bankers for trashing our economy.

    29. Re:Mexico! by ebno-10db · · Score: 1

      It may be coincidental in that the companies looking to cut way back on quality are the ones moving to Mexico, so maybe it's not Mexico's fault, but the metric for a product consumer is the same - avoid stuff made in Mexico.

      I'll take the Mexican stuff over the Chinese. I think you're right about why the quality is so bad. I've known a few companies that were able to get very good quality from their Mexican operations. It takes some effort, but it can be done. I think it's easier than in China though. I've also heard about a place called Estados Unidos de América, but I think it's next to Atlantis.

    30. Re:Mexico! by Maxo-Texas · · Score: 1

      Just realize that the GE dishwasher you paid $300 for in 1992 would cost $900 today adjusted for inflation today but you are paying $450. Most consumers will buy the $450 because it's cheap because they don't realize it actually will cost them more money in the long run.

      We went through this with a microwave.

      You have two options.

      An ugly commercial model for a moderate price ($350 to $500) or a consumer model with a 25 year warranty (like "miele" brand) which will cost you $1000.

      It's ironic, but it seems worth it to me to buy the ugly commercial model and then figure out a way to dress it up with a facade.

      Electronics are a big problem. One power surge and they are toast. So putting in some kind of power conditioning on your house will protect modern appliances.

      And for cases when the long run doesn't matter-- go cheap.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    31. Re: Mexico! by Anonymous Coward · · Score: 0

      Bought my microwave for 75aud 4 years ago. Still works well.
      beats your 300 dollar microwave, shots on your 1000dollar microwave, AND I don't need to worry about conditioning my power to save my investment!

      (I think microwaves are a bad example, I DID spend 1000dollars on my washing machine, and it has been rock solid)

    32. Re:Mexico! by amiga3D · · Score: 2

      We still manufacture lots of stuff. Just a few miles from where I am we've got a plant making stuff to ship to china. You'll love it.

      http://www.huffingtonpost.com/2011/08/23/georgia-china-2-million-chopsticks_n_872333.html

    33. Re:Mexico! by Anonymous Coward · · Score: 0

      I've often thought of moving to Mexico or possibly somewhere in South America just because of the cost of living. The standard of living may be less, but I might have enough to retire down there while if I continue living in the US I'll likely be working for a few more decades.

      If I did it, I would do it legally though. The cartels and the fact that as I understand it foreigners cannot own property in Mexico makes that a non-starter for me.

    34. Re:Mexico! by Anonymous Coward · · Score: 0

      I've seen some counter-intuitive things with clothing over the years. I bought stain-repellent khakis (for work) from Kohls, and two pairs from Walmart. The expensive Kohls pair developed a hole in the fabric near the right pocket from my keys in less than a year (I noticed and reduced the size of my keychain), and a short while later holes were worn around the back pockets (for no obvious reason). The pairs I bought from Walmart? I'm still wearing them four years later, and they're in perfect condition.

      I have some ten year old shirts still in perfect condition, and quite a few two year old shirts in complete ruin. I'm not entirely sure why.

      What I do know is to look at the thickness of the fabric. The thinner and lighter the fabric is, the faster they'll usually wear out.

      I've also noticed using any amount of bleach causes clothing to deteriorate about ten times faster. If you bleach your socks it might explain them wearing out in under two years. The shoes you wear could also be wearing them out, if they're rough on the inside. I own two dozen pairs of socks (old ones and new ones), the old ones are wearing out but are close to five years old.

    35. Re: Mexico! by Maxo-Texas · · Score: 1

      Grats.

      Assuming it was a builtin model with at least 1000 watts and 1.2cubic feet of space, 36" form factor and it had a "nice" finish?

      If not -- still grats- I had a 700 watt white microwave oven that went 10 years before I gave it away since I remodeled and got a builtin. I was happy with it but wanted the counter space. I don't expect the new one to last 20 years.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    36. Re:Mexico! by amiga3D · · Score: 1

      I hear Belize is really nice. McAffee's place is for sale I'm pretty sure.

  3. Are they made anywhere else? and.. by nopainogain · · Score: 1

    is there a way to be sure you're getting ones made by a reputable firm? The TCO/EROEI on Solar is so marginal to begin with, nobody wants to risk a multi-thousand-dollar implementation if there's a high likelihood they'll lose out.

    1. Re:Are they made anywhere else? and.. by Anonymous Coward · · Score: 0

      Maybe we could get the drug cartels to fund Solyndra?

  4. MADE IN CHINA !! by Anonymous Coward · · Score: 0, Flamebait

    Nuf said !!

    If you want junk look for the MADE IN CHINA label !!

    Nuf said !!

    If you want to send money to commies look for the MADE IN CHINA label !!

    Nuf said !!

    If you think you are helping a peasant earn a living look for the MADE IN CHINA label !!

    Nuf said !!

    1. Re:MADE IN CHINA !! by bev_tech_rob · · Score: 1

      Wasn't that Frank Katten's game in Ocean's 13?

      --
      You're messin' with my Zen Thing, man.....
    2. Re:MADE IN CHINA !! by Anonymous Coward · · Score: 0

      Okay, that's eNuf !!

  5. Race to the bottom by necro81 · · Score: 5, Interesting

    Well, that's the problem with a race to the bottom: sooner or later you do, in fact, hit bottom. This reminds me of how things played out in the desktop PC market a decade ago: really cheap components caused a lot of problems for a lot of name-brand manufacturers. Bad electrolytic caps on the motherboard were particularly pernicious.

    The good news is that, eventually, this will probably get sorted out. Producers and installers with brands and reputations (not to mention business contracts) to defend will eventually get fed up with dealing with shitty suppliers, who will either clean up their act, go out of business, or retreat to the purgatory of "known to be poor quality", where there's still plenty of business to be had (see again the desktop PC market), but not much money to be made.

    1. Re:Race to the bottom by JDG1980 · · Score: 4, Interesting

      The good news is that, eventually, this will probably get sorted out. Producers and installers with brands and reputations (not to mention business contracts) to defend will eventually get fed up with dealing with shitty suppliers, who will either clean up their act, go out of business, or retreat to the purgatory of "known to be poor quality", where there's still plenty of business to be had (see again the desktop PC market), but not much money to be made.

      To a large extent, that's already happened. After being heavily criticized for poor working conditions and high suicide rates, Foxconn increased worker salaries by about 25% and reduced overtime work in early 2012. Working conditions are still crappy by Western standards, of course – but they're not so bad by Chinese standards, and seem to be improving. This added pay means that Foxconn isn't going to be competing much for the bottom-end, low-margin business. Instead they are going to focus on high-value-add products like Apple devices. (In fact, Apple is considering making a new, cheaper iPhone with a different supplier – which seems to indicate that Foxconn might be raising the bar a bit on contract prices.) There will still be plenty of factories in China that crank out crap for people who care about nothing but the lowest price, but the Chinese leadership doesn't want their country to be known for producing only junk. They want to move up the value chain.

    2. Re:Race to the bottom by TWX · · Score: 2

      Heh. Remember "PCCHIPS" and "Amptron"? Not only were they using cheapass discrete components, but they assembled badly and designed badly. And on top of that, I worked for an idiot at the time that bought total junk parts cheap to build PCs, I think that he was buying stuff that had been RMA returned. He was tearing his hair out on warranty repair costs (ie labor), but he was angry every time he stepped up to Gigabyte or Abit...

      --
      Do not look into laser with remaining eye.
    3. Re:Race to the bottom by Anonymous Coward · · Score: 0

      This reminds me of how things played out in the desktop PC market a decade ago: really cheap components caused a lot of problems for a lot of name-brand manufacturers. Bad electrolytic caps on the motherboard were particularly pernicious.

      The bad capacitor incident in the early 2000 is pretty well known and the way it played out I don't see how it has anything to do with a race to the bottom.
      Rather it was the result of a failed attempt to improve the quality of electrolytes by copying a competitors formula.
      You can read about the whole incident here.

    4. Re:Race to the bottom by RicktheBrick · · Score: 1

      From an article about Mexican health care. Residents of USA, particularly those living near the Mexican border, now routinely cross the border into Mexico for medical care.[10] Popular specialties include dentistry and plastic surgery. Mexican dentists often charge 20 to 25 percent of US prices,[11] while other procedures typically cost a third what they would cost in the US.[10] The www.internationalliving.com site states that on average, an office visit with a doctor—specialists included—will cost about US$25, an overnight stay in a private hospital room costs about $35, and a visit to a dentist for teeth cleaning costs about $20. Some 40,000 to 80,000 American seniors spend their retirement years in Mexico with a considerable number receiving nursing home and health care.[12] This if from http://en.wikipedia.org/wiki/Health_care_in_Mexico. I guess the race to the bottom does not include health care like it does here in the United States. I live in Michigan where the republicans are trying to defeat any increase in Medicaid even if it does not cost the state any money for the first few years.

    5. Re:Race to the bottom by RabidReindeer · · Score: 3, Insightful

      The good news is that, eventually, this will probably get sorted out. Producers and installers with brands and reputations (not to mention business contracts) to defend will eventually get fed up with dealing with shitty suppliers, who will either clean up their act, go out of business, or retreat to the purgatory of "known to be poor quality", where there's still plenty of business to be had (see again the desktop PC market), but not much money to be made.

      Yah. That's the downside of "The Market Will Work It Out". You have to wait until the market works it out. Which means waiting for enough people with enough influence to go elsewhere. Which can be a very, very long time in some cases. Sometimes never.

    6. Re:Race to the bottom by TheSync · · Score: 1

      Working conditions are still crappy by Western standards, of course â" but they're not so bad by Chinese standards

      Keeping in mind that standard Chinese working conditions before 1990 was wading in a rice paddy all day in the summer heat and winter cold...

    7. Re:Race to the bottom by JBMcB · · Score: 1

      You do understand that the average wage in Mexico is around $5,000 a year, right? So to follow your argument, to make health care more affordable in the US we should keep the average wage suppressed. Makes sense to me.

      --
      My Other Computer Is A Data General Nova III.
    8. Re:Race to the bottom by swb · · Score: 1

      My dad has had a bunch of dental work done in Mexico. He had crowns done for $500 where my dentist wanted $2000.

      Now admittedly it wasn't the same product -- my crown was a CERAC done same day, his was a lab-made porcelain done over more than one day.

      So far he's been happy, but he's also the kind of guy that would be happy buying a used car that runs poorly simply because he got a cheap price on it.

      I asked my dentist about dental work done in Mexico and he wasn't very complimentary, which I kind of expected although not because it's bad but because (a) he has to justify his prices and (b) the stuff he sees is what's done poorly and the people need it re-done (possibly with some sense of urgency).

      My guess is there's a lot of "average" dentistry done in Mexico that's just cheaper because of labor and other costs.

    9. Re:Race to the bottom by TheLink · · Score: 1

      Foxconn's long term plan is to replace many of the Chinese workers with robots:
      http://www.forbes.com/sites/kenrapoza/2013/02/22/as-china-changes-infamous-foxconn-goes-robotic/

      Optimists will say they'll find jobs elsewhere. But when the Chinese workers took the US workers jobs, very many US workers did not get jobs elsewhere.

      Note that this guy managed to be "best developer" even when outsourcing his work to China for one fifth his salary:
      http://www.theglobeandmail.com/technology/how-a-model-employee-got-away-with-outsourcing-his-software-job-to-china/article7409256/
      Probably have to give him some credit for identifying and managing quality outsourcing talent.

      But you should be worried if you're an expensive worker with a job that's easily outsourced and you are merely above average, or even mediocre.

      --
    10. Re:Race to the bottom by ebno-10db · · Score: 1

      You have to wait until the market works it out.

      But it always does in the long run. Of course in the long run we're all dead.

    11. Re:Race to the bottom by ebno-10db · · Score: 1

      Foxconn's long term plan is to replace many of the Chinese workers with robots:

      Kind of like the American plan was in the 80's? I'm old enough to remember the emphasis on design for automated assembly. Then cheap labor stepped in, the MNC's got a short term gain, and all the expertise went overseas. So when they automate they'll be where we could've been 20 years ago.

    12. Re:Race to the bottom by Maxo-Texas · · Score: 1

      Of course Foxxcon plans to replace 1,000,000 of their workers with machines.

      I hear it's not going as well as they wanted but it is not going to badly.

      Robots are going to change the basic rules of our economy. A human being can't survive on what a robot costs unless prices on food and living spaces come down.

      And with ever increasing population, that doesn't seem so likely.

      Somethings got to give in the next 20 years or so.

      (and the new apple plant in the US will be almost totally automated too).

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    13. Re:Race to the bottom by Maxo-Texas · · Score: 1

      Robots are cheap enough to replace the jobs of people making $2000 a year in china and they are widely considered for any job making $8000.

      You'd starve or die of exposure in america on those wages of course.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    14. Re:Race to the bottom by real-modo · · Score: 1

      You have to wait until the market works it out.

      But it always does in the long run. Of course in the long run we're all dead.

      ... of constipation, it sound like.

    15. Re:Race to the bottom by RabidReindeer · · Score: 1

      You have to wait until the market works it out.

      But it always does in the long run. Of course in the long run we're all dead.

      Actually, there's no law that says it ever has to work out. All you have to do is stay below the threshold of pain. If the only people who won't put up with it don't have the leverage to force a change, the situation will endure until some external factor comes into play.

      If I produce a "theft-resistant" package that lacerates and maims the hands of my customers but my customers don't carry enough influence to make me change, I could very well go on crippling people until either a more profitable safer form of packaging comes along, my products become obsolete, the company dissolves (possibly for non-market reasons such as retirement of the principals), or I ruin the career of a neurosurgeon who knows an expensive lawyer (which promotes him out of the realm of "non-influential").

    16. Re:Race to the bottom by Anonymous Coward · · Score: 0

      That's why I'm not as optimistic as those people who say that advances in automation and robotics will be great for the US workers (or other expensive human workers) and that people will just find other jobs (and stop making buggy whips etc).

      Just pretend the Chinese workers are robots and ask yourself how well it has turned out for the US workers. Lots of stuff is cheaper but if you don't have a job is it still better?

      I doubt it'll get better when the Chinese workers themselves start getting replaced by real robots. Looks like it'll get uglier.

      The people in those socialist european countries that are still productive might still manage fine for a bit longer. But they might still need limits on population growth - can't have people that aren't self supporting keep making babies.

  6. Confidentiality agreements? by sjbe · · Score: 5, Informative

    From TFA

    And when defects are discovered, confidentiality agreements often keep the manufacturer’s identity secret, making accountability in the industry all the more difficult.

    Kind of irrelevant. When you buy something, the person who sold it to you is the responsible party. If they want to keep their supplier a secret (more on that later) that's up to them but the seller is the responsible party. If they don't know who they are buying from, then they are fools and deserve whatever problems they get.

    The curious bit is that I don't really see how the players in the supply chain could be kept a secret from an interested large purchaser. I run a small manufacturing company. One of the parts we make goes into a General Motors vehicle and we are a Tier 4 supplier meaning we sell to a company who sells to another company who sells to another company who sells to GM. If GM wanted to find out who made that part, I absolutely guarantee you that they could find out even if we had a confidentiality agreement in place with our customer. If the solar panel industry is unable or unwilling to do this then it means they have insufficient control of their supply chain which is a BIG problem. It means they don't really know what they are buying or how it is made.

    1. Re:Confidentiality agreements? by doconnor · · Score: 1

      What if you care about the conditions under which the product was made (because you're not a soulless utility maximizing entity). Then the manufacturer's identity is important.

    2. Re:Confidentiality agreements? by JDG1980 · · Score: 1

      Yes, control of the supply chain is key. You can get high-quality goods manufactured in China if you want, but not if you take a "hands off" approach. You have to do what Apple did, and oversee the operation at every level. And guess what? Once you do that, you'll find that the overhead means that manufacturing in China isn't as cheap as everyone makes it out to be. You really do get what you pay for. That's one reason why Apple is considering bringing some of its manufacturing back to the Western Hemisphere.

    3. Re:Confidentiality agreements? by Anonymous Coward · · Score: 0

      I think you missed the point. The issue isn't that the person who purchased the unit can't determine the manufacturing chain, the issue is other potential buyers can't. As a result someone evaluating a purchase doesn't know the track record of the various manufacturers. Thus less incentive for quality as your reputation isn't on the line with the general marketplace.

    4. Re:Confidentiality agreements? by jrumney · · Score: 1

      You can be sure that a company like GE buying solar panels for power station usage would be as much in control of their supply chain as GM is with their car parts. Smaller manufacturers buying solar panels for fitting to houses or caravans, not so much. I think if you looked in detail at any of the manufacturers of car accessories sold only through independent retailers, you'd find they were similarly lacking in control of their supply chain. This isn't an industry problem, it is a problem that happens at the lower end of any industry.

    5. Re:Confidentiality agreements? by JBMcB · · Score: 1

      How far does your supply chain morality extend? Do you look at the working conditions of the steel suppliers that sell to your supplier? How about the companies that made the machines the steel supplier uses? What about the company that makes the styrofoam coffee cups that the steelworkers use? What about the coffee they drink - is it fair trade certified?

      Just a question - if you are going to extend your morality into your supply chain, where does it end?

      --
      My Other Computer Is A Data General Nova III.
    6. Re:Confidentiality agreements? by snadrus · · Score: 1

      I've thought of this before, and think the answer is "an intensive eye to the first level of the chain". Why?
      - Everyone can find out their immediate supplier
      - 1 company of scrutiny is easy
      - Competition here is good
      - If a company knows its reason for better business, they're more likely to become minded similarly & expect the same of their suppliers.

      --
      Science & open-source build trust from peer review. Learn systems you can trust.
    7. Re:Confidentiality agreements? by doconnor · · Score: 1

      Far enough to capture 90% of the work that goes into the product.

    8. Re:Confidentiality agreements? by ultranova · · Score: 1

      What if you care about the conditions under which the product was made (because you're not a soulless utility maximizing entity).

      Caring about the conditions under which the product is made is another way of saying that said conditions are parameters to your utility function.

      --

      Forget magic. Any technology distinguishable from divine power is insufficiently advanced.

  7. pass by Anonymous Coward · · Score: 0

    So instead of Chinese workers and managers screwing us over, it'll be Mexicans?
    Pass.

  8. Rebirth! by Sponge+Bath · · Score: 2, Insightful

    We can create a domestic solar panel industry to replace the cheap defective solar panels bought from a country that helped destroy our previous domestic solar panel industry. Bark! Bark! Bark! We will catch that tail eventually.

    1. Re:Rebirth! by AmiMoJo · · Score: 4, Insightful

      Japan has a healthy solar panel industry. Similar wage levels and similar living standards to the US. It is perfectly possible to complete with China in manufacturing.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    2. Re:Rebirth! by MaWeiTao · · Score: 1

      The difference is that the Japanese have high incomes coupled with a strong sense of national pride. They also generally place high value on quality. But that isn't helping them as domestic manufacturing as been suffering massively at the hands of foreign competition.

  9. "Harsh light," get it? by TWiTfan · · Score: 1

    You got talent, kid! Stick with me and I'll get you into vaudeville!!

    --
    The cow says "Moo." The dog says "Woof." The Timothy says "Thanks, valued customer. We appreciate your input."
  10. Payment in advance not unusual by sjbe · · Score: 5, Informative

    So you paid before you got a sample? or the first delivery?

    Not unusual to have to pay in advance for a product made in China unless you are a big player. I wouldn't ship to a company in another country without cash up front no matter what the quantity was.

    That seems fraught with peril.

    That would be correct. Doing business in China is a genuinely risky proposition. I used to do work in global sourcing and have spent a lot of time trying to buy parts in Mexico, India and China. You do so at your own risk.

    1. Re:Payment in advance not unusual by h4rr4r · · Score: 2

      I would have assumed some third party would have held the money in escrow until delivery and confirmation of the parts meeting spec.

      Is there no method to do that?

    2. Re:Payment in advance not unusual by 50000BTU_barbecue · · Score: 4, Insightful
      For the under 1000$ order we made? Get serious. The Chinese company wouldn't even return our emails unless we committed to a thousand panels. This wasn't my idea, I wanted the whole toy designed in China but that would have been worse I guess.

      People don't even do escrow when they buy a house. But they should. But I guess the real estate lobby wouldn't like that at all.

      --
      Mostly random stuff.
    3. Re:Payment in advance not unusual by h4rr4r · · Score: 3, Insightful

      Yeah, people put $500 in escrow when looking at houses all the time. How much earnest money is put into escrow depends highly on location and value of property. It should ideally also reflect how much a buyer wants the property.

      When I bought my house I put a lot of money in escrow. When is that not the normal method?

    4. Re:Payment in advance not unusual by TWX · · Score: 2

      People don't even do escrow when they buy a house. But they should. But I guess the real estate lobby wouldn't like that at all.

      Huh?

      Last house I bought, we put down earnest money under the conditions that we would not back out of the deal unless we found something seriously wrong with the property during the sale process, and this being a short-sale committed us to the seller's bank's timeline of 120 days. Had we found something wrong during inspection then the deal could have been called off and we could have gotten our money back. During both our process and during a normal contractual period more like a month, the buyer has all of the opportunity they need to bring in whatever inspectors they feel are appropriate or are legally required by the jurisdiction. We had a traditional home inspector and an electrician visit the house, in addition to the appraiser. We also took the unorthodox step of talking directly with the seller several times, to learn when they'd done various maintenance tasks to the house, like the elastomeric roof coating.

      I guess that if we were cash buyers we wouldn't have had to necessarily go through the inspection process, but we probably would anyway.

      --
      Do not look into laser with remaining eye.
    5. Re:Payment in advance not unusual by moxfactor · · Score: 3, Insightful

      Doing business in China is fine if you know what you're doing. Doing business with China without being in China and you're likely to be screwed. Ordering small things online from a big company always carries a risk. You're too small fry for them to care, and you're not there to oversee the manufacturing/shipping, which is to these companies, your own fault. This is why so many smarter foreigners still prefer to pay more to go through a Hong Kong company. QC is immensely better when the 3rd party company has someone who can actually go to China, and cheaply too, for a minor, per unit, price increase.

    6. Re:Payment in advance not unusual by Steve+Hamlin · · Score: 1

      "People don't even do escrow when they buy a house. But they should. But I guess the real estate lobby wouldn't like that at all."

      You are entirely incorrect: Every house purchased using a bank loan (i.e 95+%) is transacted through an escrow company with title insurance, and the entities involved in the escrow process are, in fact, the real estate industry.

    7. Re:Payment in advance not unusual by MightyYar · · Score: 2

      I don't know where you live, but escrow is typical in PA and NJ.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    8. Re:Payment in advance not unusual by MightyYar · · Score: 1

      Oops sorry wrong guy!

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    9. Re:Payment in advance not unusual by MaWeiTao · · Score: 1

      That may be true, but even more established companies with long term partners in China have suffered a marked decline in quality. And it's certainly not unique to American companies, as I've heard similar problems experienced by the Taiwanese. I'm not sure if the problem is due to arrogance or if the Chinese economy stumbling a lot more they're letting on.

    10. Re:Payment in advance not unusual by Anonymous Coward · · Score: 0

      Are you serious??

      Everyone knows you do half upfront, and half *when the job is done*!

      That way you split the risk to both parties.

      Somebody wants all the cash upfront? He can go *fuck* himself!

    11. Re:Payment in advance not unusual by davester666 · · Score: 1

      Yes. This is part of their "nickle and dime" service.

      --
      Sleep your way to a whiter smile...date a dentist!
    12. Re:Payment in advance not unusual by Penguinisto · · Score: 1

      I think GP was talking about depositing the whole price into escrow, until the house was turned over in good order and no major defects have been found or suchlike.

      No idea why, though - usually you get possession the day you close, and you're allowed to make all the third-party home inspections that you can afford (and the seller will then have to either fix what's found, or you can back out of the deal and keep your earnest money if you or your agent is even halfway competent when it comes to making the earnest money deposit).

      --
      Quo usque tandem abutere, Nimbus, patientia nostra?
    13. Re:Payment in advance not unusual by ultranova · · Score: 1

      I'm not sure if the problem is due to arrogance or if the Chinese economy stumbling a lot more they're letting on.

      As long as people are willing to do business with China, why wouldn't the Chinese try to increase their profits by cutting corners? It's just capitalism working as intended.

      --

      Forget magic. Any technology distinguishable from divine power is insufficiently advanced.

    14. Re:Payment in advance not unusual by Grishnakh · · Score: 1

      It's probably because there's a lawyer handling the closing of the deal. The lawyer has certain legal obligations and can be sued if they don't handle the closing correctly. The two parties meet at the lawyer's office, the seller hands over the keys and deed to the house, the buyer hands over the cashier's check, and that's that. The lawyer later gives the seller their portion of the proceeds, the real estate agent their portion, pays the applicable government taxes, etc.

    15. Re:Payment in advance not unusual by 50000BTU_barbecue · · Score: 2

      First time I hear of that. I'm in Quebec. Things are ... different here.

      --
      Mostly random stuff.
    16. Re:Payment in advance not unusual by Anonymous Coward · · Score: 0

      >Not unusual to have to pay in advance for a product made in China unless you are a big player

      Wrong. Unless you call spending £11K "big player."

      We got a prototype, and the delivery was accepted against that. The submitter was an idiot, plain and simple.

  11. secrecy way out of control by DriveDog · · Score: 0

    Anything argued in a court of law by anyone should be open, with very few restrictions (identities of minors and victims in some criminal cases, etc). I've not yet heard any convincing arguments for keeping details of cases involving corporations from the public, at least not after some short delay in extraordinary cases (a month or so).

    1. Re:secrecy way out of control by Maximum+Prophet · · Score: 4, Insightful

      Anything argued in a court of law by anyone should be open, with very few restrictions (identities of minors and victims in some criminal cases, etc). I've not yet heard any convincing arguments for keeping details of cases involving corporations from the public, at least not after some short delay in extraordinary cases (a month or so).

      A great idea, but if you implemented it, companies would hack around it. Perhaps by adding another layer of lawyers invoking client privilege, or binding arbitration by a secret panel.

      When companies sue each other, neither wants the results public. When a person sues a company, the company will offer them more money to stay quiet, than they can get from the original lawsuit. (once you figure the likelihood of winning & the time value of the money) A settlement keeps most of the facts away from the courts.

      Stronger whistleblower protection and a better FTC would help shine light on corporate malfeasance. A law that made silence contracts non-binding would be bad for a few individuals, but good for the rest of the country.

      People need privacy. Corporations, not so much.

      --
      All ideas^H^H^H^H^Hprocesses in this post are Patent Pending. (as well as the process of patenting all postings)
    2. Re:secrecy way out of control by some+old+guy · · Score: 4, Insightful

      I hope you're being sarcastic. Using the terms "court" and "law" in any discussion of Chinese business practices is automatically +5 Funny.

      --
      Scruting the inscrutable for over 50 years.
    3. Re:secrecy way out of control by DriveDog · · Score: 1

      Of course there'd be ways around it, but the point is that US citizens shouldn't be subsidizing in any way (such as paying for the existence of courts and judges and record-keeping and lawmaking) the keeping of such information from the public.

      Whistle-blowing needs to be protected by an independent (of Congress and the Executive) organization. Otherwise the Prez or a Senator just declares a particular case ineligible for protection for lame reason du jour.

    4. Re:secrecy way out of control by DriveDog · · Score: 1

      Well, no. I did make the mistake of assuming the customers of the Chinese mfrs were US corporations and leaving out some intermediate concepts. Being US corporations makes them subject to US law wherever they're doing business. In my Utopia, legal documents including contracts involving a US corporation would not be protected from public exposure. So yes, this would be a radical change, but it wouldn't matter whether the other party was Chinese or Swiss or Manx.

  12. Rising transportation costs by intermodal · · Score: 3, Insightful

    I would never have figured Mexican labor would become cheaper than that found in China. Sure, there's an education gap between Chinese and Mexican labor, but Mexico has been successful at producing exports in a variety of industries.

    Significant to what I'm seeing in that comparison is that while the "build it wherever labor is cheap" attitude has certainly been prevalent, I have to wonder if rising fuel costs will begin to whittle away at that? Several years ago, a man who ran a raw cotton storage facility told me that the cotton was grown here in Texas, shipped to China, manufactured into completed products, and shipped back to the United States. How much longer can transportation to and from across the Pacific be cost effective compared to other options?

    --
    In SOVIET RUSSIA... erm...NSA AMERICA, the Internet logs onto YOU!
    1. Re:Rising transportation costs by JDG1980 · · Score: 4, Interesting

      I would never have figured Mexican labor would become cheaper than that found in China. Sure, there's an education gap between Chinese and Mexican labor, but Mexico has been successful at producing exports in a variety of industries. Significant to what I'm seeing in that comparison is that while the "build it wherever labor is cheap" attitude has certainly been prevalent, I have to wonder if rising fuel costs will begin to whittle away at that? Several years ago, a man who ran a raw cotton storage facility told me that the cotton was grown here in Texas, shipped to China, manufactured into completed products, and shipped back to the United States. How much longer can transportation to and from across the Pacific be cost effective compared to other options?

      Shipping costs are a major issue when a product has a low value-to-weight ratio. Almost all drywall used in the US is manufactured domestically, because these are massive, heavy sheets and only sell for $10-$20 each at retail. Shipping them across the Pacific would be cost prohibitive. (We did import some drywall from China during the 2004-2007 housing boom, and it was a disaster – much of it leaked hydrogen sulfide gas, corroding pipes and wiring in the affected houses.) Likewise, plywood is mostly made in the Western Hemisphere; it's sometimes imported from Latin America, but Chinese plywood is less common. You can get quality US-made plywood at Home Depot and it's not really that much more expensive than the foreign stuff. Again, this is because shipping costs dominate with a heavy and relatively cheap product like plywood.

      Solar panels are big and bulky, so manufacturing them in China and shipping them to the US will become a worse and worse idea as prices drop.

    2. Re:Rising transportation costs by Anonymous Coward · · Score: 2, Insightful

      "build it wherever labor is cheap" is only half of the story. We have essentially moved all the low level manufacturing of the "low value" electronic components to China. So it is not just the assembly house is there, but the entire ecology surrounding it. They can essentially walk down the street to source components and get their parts in a few hours locally saving on shipping cost/time.

      If you were to assemble iToys in North America, individual parts (probably 100 parts) e.g. LCD, case, chips, circuit board(s), connectors, resistors, screws, plastic has to be shipped all the way here and each and every single of them would have shipping cost too. Compare that with the small faction of shipping cost for high value iToy from China.

      Not until Mexico or wherever have the rest of the supply chain moved there, they cannot easily compete with China's logistic advantage.

    3. Re:Rising transportation costs by Anonymous Coward · · Score: 0

      That is actually an excellent point. Thanks, AC!

    4. Re:Rising transportation costs by Tom+Womack · · Score: 2

      Transportation across the Pacific is scarily cheap; it's about a thousand dollars for a container that holds about twenty tons, so five cents per shirt.

      This is because it's done with a big boat, and boats are amazingly efficient; five thousand containers use about a fifty-megawatt engine for about two weeks, that's twenty kilowatt-weeks (a couple of tons) of fuel to take each container to China or back. You're adding the price of about a cup of super-cheap marine fuel per shirt per direction.

      Remember that shipping wheat from Egypt to Rome was cost-effective with sailing ships two thousand years ago!

    5. Re:Rising transportation costs by TheLink · · Score: 1

      But if you make it in Mexico does that mean you can put "Made in America" stickers on your product? :)

      --
    6. Re:Rising transportation costs by Anonymous Coward · · Score: 0

      The supply chain has been the in place for a long time. There are several companies that manufacture products from LCD TVs to aircraft parts in Mexico. There are also a few contract electronics manufacturers who regularly compete with those in Asia. The article wasn't very clear on how it was determining the wage difference or what the reason was for the drop. In one paragraph, they refer to average wage in another they refer to wages as percentage of unit of output. The latter could be due to leveraging automated processes and becoming more efficient.

    7. Re:Rising transportation costs by chuckinator · · Score: 1

      Considering that Mexico is within the boundaries of the two continents named "America", you're damn right you can. Made in the USA is tricky, but they do it if the only thing that happens in the US is assembly a few foreign made major subassemblies into a finished product and spraying it with a clear coat.

    8. Re:Rising transportation costs by ebno-10db · · Score: 1

      Transportation across the Pacific is scarily cheap

      It's also scarily slow.

    9. Re:Rising transportation costs by Anonymous Coward · · Score: 0

      You can get quality US-made plywood at Home Depot and it's not really that much more expensive than the foreign stuff. Again, this is because shipping costs dominate with a heavy and relatively cheap product like plywood.

      In 2011 Chinese hardwood plywood had a 66% market share (http://www.hpva.org/node/1078). Plywood import taxes, not shipping are erasing the price advantage and causing cabinetmakers grief (http://www.woodweb.com/cgi-bin/forums/cabinetmaking.pl?read=740930).

      You can get quality US-made plywood at Home Depot

      Columbia Forest Products (http://columbiaforestproducts.com/Retail) being stocked at Home Depot was a surprising and welcome exception to their usual fare.

    10. Re:Rising transportation costs by pepty · · Score: 1

      So long as solar panels are silicon based it's going to be hard to compete with third world countries wherever they are located. Purifying silicon and manufacturing photovoltaic cells generates a lot of pretty nasty waste. The US and the EU have quite a bit to say about how you dispose of it and whether or not you have keep it separate from your workers. I have no idea how Mexico will stack up in that regard, but hopefully better than China.

    11. Re:Rising transportation costs by Anonymous Coward · · Score: 0

      I would love to see Mexico flourish and replace China as a major manufacturer of imported goods to the US. They already do export a lot to the US, but there is so much more potential. There may be an education gap, but Mexico could easily step up given the right resources.and it certainly would alleviate transportation costs.

      And if more Mexicans had good jobs in Mexico it would also alleviate the problem of immigration (legal or otherwise).

      Given that Mexico is literally a stone's throw away from the US (I've stood on the banks of the Rio Grande and it is), it's really stupid that we have things shipped halfway around the world from a country that we seem to be constantly at odds with, be it their hacking, their support for North Korea or their shoddy goods.

      It's an old story, but some news station was running it again yesterday. Chinese people are illegally smuggling baby formula into their own country because they don't trust their own baby formula. I missed what unit of measurement they were using (volume? weight? value?), but it has surpassed the smuggling of drugs according to the report I saw.

  13. addendum by necro81 · · Score: 4, Insightful

    I should note an addendum to my comment about "this will probably get sorted out." There will be stratification in the market. By that I mean that you'll be able to sort out good producers from bad based on quality (and reputation - deserved or not), with price point being a proxy measure of that. People seeking reliability, and who are willing to pay for it, will know where they can go. Those who don't care if they get early failures, can shoulder the risk of early failures, or just can't afford better will likewise know where they can go. There will also be some paradoxical cases of companies that command a price point not at all justified by their quality.

    It is, again, like the consumer electronics market as a whole. If you are looking for, say, a PC power supply, you can get quality products backed by good warranties and a long track record, but you'll pay a price premium for it. You can also go bargain basement, know that you are getting a lower quality product that has a higher chance or early failure, but be OK with that. But power supplies are a relatively mature market in terms of size, growth rate, component supply chain, and R&D roadmap. Photovoltaics are still very much in flux, and it'll probably take another few years - even a decade or two - before things settle out.

    Another parallel with the PC industry: things were simpler when it was small and niche. Think back to the 1970s and 1980s - PCs were not yet a commodity, lots of manufacturing was still taking place in industrialized countries to high standards, there were lots of small- and medium-sized companies that devoted a lot to the design, build, and manufacturing quality, because a bunch of warranty claims would either bankrupt them or kill their brand (which would have the same effect). Computers were purchased and used by fairly knowledgeable people. Then there came an explosion in the late 1980s and 1990s, when there was a feedback loop of commoditization: more widespread use and standardization lead companies to compete on price, which drove down costs, which allowed for more widespread use, etc. Along the way, prices went way down, but quality also suffered along the way.

    I will noet that, during that same time period, value went up tremendously. Even if the reject rate of components and finished goods went up, you still got a lot more product for the same amount of money. This is also true in solar: you can get a lot more for the same amount of money these days, even taking into account the higher reject rate. This will continue into the foreseeable future.

    1. Re:addendum by TubeSteak · · Score: 1

      I should note an addendum to my comment about "this will probably get sorted out." There will be stratification in the market. By that I mean that you'll be able to sort out good producers from bad based on quality (and reputation - deserved or not), with price point being a proxy measure of that. People seeking reliability, and who are willing to pay for it, will know where they can go. Those who don't care if they get early failures, can shoulder the risk of early failures, or just can't afford better will likewise know where they can go.

      You wouldn't want this state of affairs for your food supply, so why would you accept it for manufactured goods?

      --
      [Fuck Beta]
      o0t!
    2. Re:addendum by necro81 · · Score: 2

      You wouldn't want this state of affairs for your food supply, so why would you accept it for manufactured goods

      What makes you think we don't have that kind of stratification of price/quality in our food supply?

    3. Re:addendum by Anonymous Coward · · Score: 0

      I just microwaved a very cheap store-bought pizza so I'm really getting a kick out of your reply.

  14. Cheap crap from China? UNPOSSIBLE by Gothmolly · · Score: 1, Informative

    Say it isn't so!

    --
    I want to delete my account but Slashdot doesn't allow it.
  15. "settlement" is the key word here by Anonymous Coward · · Score: 0

    This wasn't argued in court, it was discussed between the parties before seeing the light of day in court. And, one of the parties most likely thought it would be worthwhile to keep it quiet, perhaps along with a financial incentive to the other side.

    This kind of thing comes up all the time.. maybe both sides of the deal didn't have particularly clean hands: When you're buying concrete for the making of shoes, you're less likely to want to gripe about whether it passes the slump test when it's delivered. Extra special good price on those construction materials, perhaps with some not-entirely-on-the-books compensation for some of the actors involved, and an invoice price for the eventual customer that doesn't reflect the actual price paid...

    Or, simple embarassment at getting "taken".

    Unpublished, not for precedental use, court decisions are another story, and they should be abolished.

  16. Non-story by bhlowe · · Score: 1

    The end user should always buy with a warranty and a rated guarantee of performance. With microinverters and the like, each solar panel's output is available to the user on a browser. So... any defective panel can be swapped out and replaced. A small hassle for the installer and wholesaler, but its built into the incredibly low prices anyway. ($3/watt installed and warrantied for 10 years). This is a non-story. Who cares if a few solar panels need to get shipped back to China every month? Container ships leaving the west coast are usually empty anyways.. we only export our waste products and defective goods.

  17. Escrow by sjbe · · Score: 1

    I would have assumed some third party would have held the money in escrow until delivery and confirmation of the parts meeting spec. Is there no method to do that?

    Of course it can be done but it is expensive and not as easy as you might think. For that to work you have to have a very detailed specification and the ability to inspect the product to ensure it meets the specification. Sometimes the only real way to do that is to actually see it being made. If you are doing serious amounts of business in China you pretty much have to have your own people there to manage things and ensure stuff is done properly.

  18. PV Installer here by Anonymous Coward · · Score: 0

    I've installed several thousands panels in the last few years, and I haven't had one defect panel from China. In fact the only panels with defects where from Sunpower, USA. They used to package the panels in a not so optimal way, which destroyed some of them during shipping.

  19. These failure rates are expected by Cassini2 · · Score: 1, Interesting

    Firstly, solar cells traditionally lose a large percentage of their performance after the first couple of years of use. If the small assemblies are experiencing a 50% power loss after 2 years, then achieving 50% after 7 years on a high-quality large assembly is reasonable. I'm not really sure why people are expecting solar cells to last 25 years.

    Secondly, a roof is a rough place to put a solar cell. It is continuously exposed to sun (ironically), which breaks down many plastic coatings. Additionally, the optical surfaces are affected by abrasion from snow, rain, and wind-borne debris. This abrasion rapidly breaks down optical surfaces, which are needed for solar cells. Roofers are very familiar with the abrasion problem - each and every 25 year shingle does not last 25 years. Additionally, popular shingles are made from tar, felt and rock, as opposed to high-tech plastics, for valid mechanical and photo-chemical reasons. Mechanically and photo-chemically, an array of small plastic optical things will degrade significantly over 25 years. Even high-quality optical materials, like glass windows, degrade in roof-top applications over 25 years.

    I'm not really sure why people expect solar cells to last 25 years in uncontrolled and exposed applications. Seven years is a tough specification. Two years is realistic, and that sounds like what some of these systems are actually actually achieving.

    1. Re:These failure rates are expected by Anonymous Coward · · Score: 2, Informative

      Well, my own experience is quite a bit different with *quality* panels. I've got some I bought new 30+ years ago that are still 70% of the original spec in output.
      Guess who made them? BP - that's right, the oil company that shut down solar production due to lack of profit just before they oiled up the Gulf. I paid pretty high for them back in the late '70s/early '80s, but there you have it - they've also lived through hail, wind, you name it - along with a thermal cycle per day, which is often the real killer in the cheap stuff - they don't do the "magic" tempco matching of all the parts. While I also like my new Schott panels - they are going to much thinner glass to save money - and probably won't be as robust, but time will tell.

      A roof IS a rough place to put a solar panel (forget an un-hermitic cell) indeed.

      You can see a picture of my system, which has allowed me to be off grid since '79 - and which now charges my Volt, here: http://www.youtube.com/watch?v=F4IM2VjkRXM, and more on my channel generally, as well as here: http://www.coultersmithing.com/forums/viewtopic.php?f=48&t=563 (my forums) which details the latest upgrade, in which it was worth paying rent on a crane and labor to help remount 30+ year old panels, because they still work fine.

      Avoid all amorphous and thin film panels - they all fail due to temco/microcrack issues very young. The "new tech" to make the panels cheap is pure junk - and the silicon wasn't the major cost - the glass, the hermetic sealing, and the tempco matched parts were always the main cost...there's quite a bit of hype in the whole alt/energy biz - too many starry-eyed people with money to be fleeced to avoid that.

    2. Re:These failure rates are expected by FhnuZoag · · Score: 1

      Yeah, I kinda question this article, and its focus solely on defective panels from China - we don't really have a reference point for what sort of defect rate is 'normal'.

    3. Re:These failure rates are expected by Beer_Smurf · · Score: 1

      Because without those expectations the ROI doesn't work.

    4. Re:These failure rates are expected by JDG1980 · · Score: 1

      Firstly, solar cells traditionally lose a large percentage of their performance after the first couple of years of use. If the small assemblies are experiencing a 50% power loss after 2 years, then achieving 50% after 7 years on a high-quality large assembly is reasonable. I'm not really sure why people are expecting solar cells to last 25 years.

      Because if they don't last that long then they aren't worth buying. At least not at current prices. If they got a lot cheaper then 10 years might be acceptable. Marginally. Replacing heavy panels on the roof is an expensive process in and of itself and cannot affordably be done on a regular basis.

    5. Re:These failure rates are expected by Anonymous Coward · · Score: 0

      Plenty of manufacturers are selling solar PV modules with a 20 year warranty. Many of those include, as part of the warranty, "we will replace the panel if average output falls below 80% of what it was when the panel was new".

      You can't sell a panel in Ontario without a warranty like that. Oh, it's perfectly legal to try, but you won't find a single customer willing to buy it. They all want a guarantee that it'll last the length of their MicroFIT contract.

    6. Re:These failure rates are expected by chuckinator · · Score: 1

      Is it really that hard to properly anneal a photovoltaic?

    7. Re:These failure rates are expected by Anonymous Coward · · Score: 0

      This turns out not to be the case.

      My own panels are 3 years old and still producing as much output as the day I installed them.

      They are guaranteed by the manufacturer (Sharp) to produce at least 80% of original output at 25 years.

    8. Re:These failure rates are expected by pepty · · Score: 1

      Forget the panels - how many of the manufacturing or installing companies will be around in 15 years to honor the warranty?

    9. Re:These failure rates are expected by Cassini2 · · Score: 1

      It depends if you are trying to anneal a proper silicon crystal (like the grandparent poster's tech from the 70's or 80's) or the cheapest and thinnest piece of silicon ever made (today's tech.)

      To a certain extent, cost and reliability are opposites. If you reduce costs too low, then quality must suffer. Hence, why the original poster (me) expects unreliable cells, and the grandparent poster's experience with old but highly reliable cells. Different production techniques to reduce costs have dramatically affect the expected long-term reliablity of the solar cells.

      Incidentally, very good solar cells are still being made for expensive applications (like space). It is just the inexpensive and easy to obtain cells are much less reliable.

  20. There's no Chinese word for "quality" by Anonymous Coward · · Score: 0

    As far as I can tell, unless you have a rep actually in country checking batches, you're screwed. Even so-called ISO compliant manufacturers only do non-shoddy work when someone is keeping an eye on things at all times.

    When I was a kid working deliveries, my boss had a sign on his wall: "The bad taste of poor quality will linger when the sweetness of the price is long forgotten"

    1. Re:There's no Chinese word for "quality" by pepty · · Score: 1

      Unfortunately same goes for India, at least when it comes to pharmaceuticals. Ranbaxy (a generic drug manufacturer) just received a $500M fine from the FDA for basically faking all of their QC paperwork (ISO and GMP) and FDA applications for all of their products. The FDA did on-site inspections but they were always announced months in advance so Ranbaxy had plenty of time to prepare. They copied and faked bioequivalence and QC documents and submitted them to the US, EU, South American countries, South Africa ... They only got caught because whistleblowers (who previously worked for US pharma companies) spent months begging the FDA to investigate.

  21. Been there, done that :-( by Anonymous Coward · · Score: 0

    Domestic PV industry, Ha! In Greece we have three (3) PV and panel plants and you cannot even find any of their products in Greek shops. In fact, noone seems to know these plants even exist! We are talking about multimillion-scale investments that were made in view of European plans to install PV energy plants in the south.

    In one of these companies' site (a ~150 million euro plant near Patras) you can see a video showing the raw silicon cubes coming from Germany entering the plant in the one side and PV panels exiting on the other. In between, you can see clean rooms, properly dressed personnel, etc.

    All you can find in the Greek market is chinese panels, and there are no real statistics about their market share dominance. Unfortunately, my bet is that these plants will very soon (if they have not already) go bankrupt and vanish in thin air.

  22. Why is secrecy permitted in settlements? by WOOFYGOOFY · · Score: 1

    because one of the parties wants it? Fuck you. The purpose of the law is to serve the greater needs of society, not the parties involved in a lawsuit. A LOT of shit goes down in terms of in and out of court settlements and wrongdoing that has the effect of frustrating researchers trying to ferret out and understand important trends and practices in society because of this secrecy. This does not serve the greater needs of society, in fact, just the fucking opposite.

  23. Fuck you, America by Anonymous Coward · · Score: 0

    This is one subject where America can go and fuck itself very much.

    There is absolutely no reason whatsoever that solar could not be used widespread, TODAY, other than it being held back. This bullshit report is just another fine example of American fuckwittery.

    Big power - NOT INTERESTED in promoting alternative energy - for obvious reasons
    Alternative energy suppliers - HAPPY TO install systems for treehuggers at STUPID prices with 15-20 YEAR ROI - not interested in rocking the boat
    Consumers - Too fucking stupid and apathetic to notice

    Solar panels have been around for decades. What's holding them back is the pretense that the technology isn't "mature" yet. That it still needs billions in R&D to get that perfect fucking panel. Every year or two we hear about a new "breakthrough" that means they can make a panel 2% more efficient. WHO THE FUCK CARES??? THE ENERGY IS FREE WHY THE FUCK DO I CARE IF MY PANEL CONVERTS 18% or 20% OF IT? Pretty much ANYONE with a detached home has enough roof space to fit enough panels to power their home. Make the fucking things CHEAPER. Yeah, sure, I'd love for my phone never to need plugging in - do carry on with the research but in the meantime MAKE CHEAP PANELS.

    Inverters? Ancient technology. Absolutely no reason why they should be costly.

    Batteries? Ah. Now here's a problem. Battery technology is the scariest of them all, for the corporations. People being able to STORE their FREE power is a fucking nightmare for them. This is probably one of the biggest areas where technology is being retarded and buried. What happened to Ceramatec for example? They said they'd have a domestic 'fridge sized' 50kWh sodium-sulfur battery for $4,000, by 2010. Now they're dead quiet on the subject of cheap storage.

    Imagine:
    Solar panels, say $5,000
    inverter, say $1,000
    50kWh battery, $4,000

    $10,000, to never need the grid again for a fairly average home. The ONLY problem being - nobody can get their hand in your pocket for their monthly fee.

  24. Myth of Low Chinese Quality by JimtownKelly · · Score: 1

    I'd rather keep hiring Chinese programmers than move our company's operations to Mexico. However, we might consider flying some Mexicans here to clean the garbage out of the parking lot.

    --
    -- Jimtown Kelly
  25. Racism by nikanth · · Score: 1

    Stop being racist and brand the entire China, instead blame specific businesses.

    1. Re:Racism by real-modo · · Score: 1

      See, that's the thing about business reputations. It only takes one bad egg to stink out the house.

    2. Re:Racism by Anonymous Coward · · Score: 0

      China didn't make fun of entire USA, when Microsoft took money and gave Windows ME to customers

  26. Cheaper material by csoh · · Score: 1

    Roughly 3 yrs ago the company I work for noticed that Price of Nylon 12 resin had been steadily rising. Once asked, representative of resin manufacturer said "Oh, they're hugely popular replacing fluoropolymer based plastic(PTFE-teflon I think) in solar panel(in china)." While Nylon 12 is still better than more common plastics for this purpose, it is definitely less durable and cheaper alternatives to fluoropolymer.