The world’s solar energy industry is facing a period of business failures and consolidation because of extremely tight credit, intense competition to produce solar panels, and falling prices, analysts report. That combination of factors could drive nearly nearly three-fourths of all solar energy companies out of business, according to an analyst with Germany’s Commerzbank. The bank reports that in 2009, solar energy companies worldwide are planning to invest 33 billion euros ($42 billion)
in solar projects, relying on 20 billion euros ($26 billion) in financing — money that will likely be extremely difficult to borrow given the current global credit crunch. Reuters reports that that after a period of consolidation, the prospects for the solar energy industry will look bright, as government investment and technological advances will help solar approach the goal of “grid parity” — meaning that photovoltaic cells will produce electricity as cheaply as coal-fired power plants.