What is solar inventory?

Solar Inventory is inventory carried by solar companies and can include: The management of solar inventory comes with some specific challenges which it shares with other highly innovative industries which experience similar demand & price volatility and technological disruption.

Why is inventory management important in the solar industry?

And so, an important objective of inventory management in the solar industry is to track inventory not only across multiple warehouses but also across multiple trucks, which themselves, can be considered as mini-mobile stores.

Why is solar inventory management so difficult?

The volatile nature of the solar industry makes Solar Inventory management a challenging task. Excess solar inventory can very quickly be made obsolete by new technology. Solar inventory can also get devalued because of frequent price drops.

What are the best techniques for solar inventory management?

The best techniques for solar inventory management are the Reorder point formula, Consignment and Safety Stock. Solar Inventory includes inventory management of solar modules, solar cells, PV materials, solar paste, silicon wafers, frames, backsheets, junction boxes, PV glass, PV Equipment, PV connectors and racking & mounting.

Can solar inventory be devalued?

Solar inventory can also get devalued because of frequent price drops. Sales cycles are not very predictable because demand is closely linked to consumers’ energy bills, price volatility and incentives provided by governments. Solar Inventory management needs to help improve demand planning and liquidity/cash flow.

How has the solar industry innovated over time?

The Department of Energy has an excellent resource called the Solar Innovation Timeline where you can see how the solar industry has innovated over time. While this innovation has improved the throughout of solar modules and helped bring the price down, it has also created a risk of obsolescence which very much impacts inventory management.