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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."

7 of 149 comments (clear)

  1. 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.

  2. 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.

  3. 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.

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    Mostly random stuff.
  4. 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.

  5. 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.

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  6. 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.

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    Scruting the inscrutable for over 50 years.
  7. 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.

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