Solar glut is temporary, demand to catch up by 2012

The oversupply problem plaguing the solar panel industry may be coming to a close. A glut of panels caused prices to plunge this year, calling into question the future of the industry, as well as the individual fortunes of manufacturers. An increase in demand from Germany is helping to consume the excess inventory on the market, according to a new report by research firm iSuppli, which should provide some support to the manufacturers.

Close to half of all solar panels manufactured this year will not be sold in 2009, iSuppli says, and it forecasts that the glut will continue until 2012. In August, the company pegged oversupply at 92% for 2009, but it recently revised the overage rate to 66%.