Business school teaching case study: how should solar-panel makers respond to falling prices?

Solar panels have become so cheap so quickly, that they have gone from curiosity to commodity in less than four decades.

The global glut means panels have fallen in price dramatically, leading to widespread proliferation. They are sometimes considered cheap enough to be used as an alternative material for garden fencing; in some locations, new panels enable households to sever their connection to the grid.

A virtuous cycle is under way in which rising manufacturing capacity leads to lower costs and increased demand. Everyone benefits — except for the solar-panel makers.