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First Solar The Solar Module Recycling Opportunity Case Solution

Solution Id Length Case Author Case Publisher
2750 1387 Words (6 Pages) Ram Subramanian Ivey Publishing : W16177
This solution includes: A Word File A Word File

The solar energy provision for residential customers involves the value chain industry with a downstream segment that maintains the system with a highly fragmented consumer level and consolidates the commercial level. In several economic incentives, Ample political support is formed in many European nations of the 21st century that is demanded solar energy vitality. PV modules are demanded globally, accounted 74 percent in several countries such as France, Germany, Spain, and Europe. CSI technology in the complex value chain manufactured the streamlined through thin-film module, which consists of depositing thin film semiconductors on interconnecting cells, sheet glass, individual isolating cells, back-sheet of glass, and sealing modules with encapsulant. Mostly in Chinese entrants, CSi module manufacturers are considered midstream players, which have PV cells to accompany the assembled components into solar modules completely. The industries are traditionally fragmented, consolidating quickly to exceed bankruptcy capacity.

Following questions are answered in this case study solution

  1. Could First Solar still be profitable if silicon prices continued to fall?

  2. Was the systems business a competitive advantage or a distraction?

  3. What changes did First Solar need to make to counter the threat of Chinese entrants?

  4. Could the company maintain its competitive advantage or would it follow other American solar manufacturers into bankruptcy in the face of these difficult challenges?

Case Analysis for First Solar The Solar Module Recycling Opportunity

1. Could First Solar still be profitable if silicon prices continued to fall?

Solar energy is a process in photovoltaic (PV) cells use to trap sunlight and convert it into electricity. Scientists discovered silicon solar cells and realized the limitless energy of the sun. Solar energy is relatively high cost as compared to the cost of energy using fossil fuels. The gradual reduction in prices increases the use of solar energy. The conventional energy price is US $0.103 to 0.13$ kilowatt (Kwh), and it is a large semiconductor company in the United States. The price of solar cells reduces rapidly to $2.00 per kWh. Large semiconductor companies deals in the production facilities for solar panels. Companies attract to solar energy, and it is an additional energy source for peak demands during the day. The crystalline silicon includes the cadmium telluride (CdTe) to identify the first solar to promote.

The wide popularity was met with gradual encroached by the other two and it’s publicized by the bankruptcy of Solyndra. Solar energy is useful because it is only expensive to create, but it works for a long time. Compared to it, silicon prices are lower, but it is not as long-lasting as solar panels. The price reduction gradually starts to decrease with the use of solar energy, but it is used in special situations. Solar energy can be used to give power to satellites, and it has a conventional energy cost of more than $2.00 kWh. In 1980, large semiconductor deals with solar energy reduced rapidly in 1990. The additional energy source meets the demand during the day, and it develops companies to identify alternatives. The rate of conversion of sunlight into electricity is high manufacturing cost, but lower cost when start using it. Compared to it, silicon prices fall down, but it has a large cost while consuming it.

2. Was the systems business a competitive advantage or a distraction?

The mission and its commitment to sustainability are included in the system business's corporate responsibility. The responsible provider of renewable energy pledges to use ethical business methods.

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