As solar manufacturers struggle to survive, an industry watchdog warns that sustainability could be at risk
The commitment of solar panel manufacturers to good environmental practices may be fading as intense competition causes some companies to pare costs and others to go out of business, according to an industry watchdog.
The Silicon Valley Toxics Coalition has just released its third annual Solar Scorecard, which evaluates US makers of photovoltaic solar panels for their performance in recycling, emissions, worker rights and use of toxic materials. The group's director said it is seeing some danger signs for the industry, including declining market share among the companies most focused on sustainability and a reduction – from 14 to 10 – in the number of companies that answered the coalition's annual survey. Three of last year's respondents have either shut their doors or filed for bankruptcy.
Solar manufacturers find themselves in a cruel paradox this year. The US market for solar panels is booming. In the first quarter of this year, the country installed 723 megawatts of solar, representing an increase of 33% from the same quarter last year, according to the Solar Energy Industries Association (SEIA). The rapid uptake of solar power is spurred, in part, by falling prices for solar modules, caused by a global production glut. Razor-thin or nonexistent margins are leading to an industry consolidation.
Sheila Davis, the executive director of the toxics group that issued the report, said that an industry with environmental stewardship at its heart is at risk of sacrificing its greenness. "We don't think that's a good sign for the industry. If there's an economic downturn, the first people to go are the sustainability people, and we don't want to see that happen," she said. "Sustainability should be a core of the solar industry model."
The toxics coalition saw a few worrying signs in this year's scorecard.
Two of last year's respondents, Sovello Solar of Germany and Scheuten Solar, owned by China but based in the Netherlands, went out of business in 2012. A third, Suntech Power, the Chinese firm that was once the world's largest maker of PV solar modules and a leader in sustainability initiatives, is in the midst of bankruptcy proceedings. These companies are among only a handful of industry players who have responded to the coalition's survey in the past.
Two companies that did respond to the survey, both this year and in previous years, have seen their market shares drop significantly. Arizona's First Solar saw its share drop from 9.4% in 2011 to 6.9% in 2012, while China-based Trina Solar declined from 8.1% to 6.3%.
First Solar, the only solar manufacturer that required its customers to recycle panels at the end of their 25-year lifespan, has discontinued the programme everywhere except in Europe, where such recycling is required by law.
An SEIA spokesman disputed that the solar industry's commitment to green practices is fading and pointed to SEIA's environment and social responsibility charter, which deals with issues such as water, electricity use, recycling and waste.
A handful of solar-panel makers, which together account for more than 50% of US solar panels, have signed the charter. They're currently refining it and plan to start reporting on key performance indicators later this year. Signatories include the highest-scoring companies on this year's SVTC scorecard: Chinese panel-makers Yingli Solar and Trina Solar, as well as California-based SunPower. Another signatory, Gehrlicher Solar of Germany, declared bankruptcy last month.
"Certainly the companies that are going out of business are scaling back, but the companies that are predominantly the leaders are continuing to dedicate resources to sustainability," said John Smirnow, SEIA's vice president of trade and competitiveness.
First Solar, which drew criticism in the report for scaling back its recycling program, claims it did so in response to the desires of its customers. Commercial customers don't want to pay upfront for recycling 25 years from now, spokesman Stephen Krum said. Instead, customers are "using their financial resources by dealing with the recycling issue at the end of life".
Among its other findings, the toxics coalition concluded that only three of the top 40 solar manufacturers report information about their emissions, while 12 post their targets for reducing their use of toxic chemicals on their websites.
David Ferris is a journalist who writes about eco-business and eco-technology for publications like Forbes, Sierra magazine and the New York Times.
Sustainability
Solar power
Renewable energy
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