Centron Solar. Ever heard of them? Well neither had many in the solar industry before a few months ago. The Chinese solar startup has plunged headfirst into the U.S. solar industry, landing in Eugene, Oregon, where they plan to become a large factor in this country’s photovoltaic industry.

Their plan is to sell bargain-priced solar panels directly to installers, skipping the middleman and subsequently selling panels at prices at least 10 percent lower than competitors right out of the gate according to The Oregonian.

To illustrate how fast Centron has descended upon Eugene and the U.S. solar industry, the company did not even have a name until last month. And within a few weeks of its existence it had leased its Eugene headquarters and a 25,000 sq.ft. warehouse, which it will use to house its first shipment of solar panels, which itself arrived less than two weeks ago.

Centron Solar’s aggressiveness has taken many by surprise and, like any move of such boldness, could either go down in flames or radically change the face of the American solar market. Centron’s goal is to sell solar energy at an average of $1 per watt within the next few years. While some thin film companies have already claimed reaching that goal, it would be big news for silicon solar panels which boast higher efficiencies but also higher costs.

Centron’s model goes like this: 30 different companies in China manufacture the many components of their solar panels, which are assembled, either here or there, and sold directly to solar installers in the United States. According to the Oregonian article, Centron has already been in contact with 25,000 solar companies stateside. In Oregon, the state’s largest solar company, Advanced Energy Systems (AES) is currently testing Centron’s product.

Centron Solar is the creation of former Solarfun — a large Chinese solar firm — executive and Eugene resident Ocean Yuan. He has taken advantage of the eagerness of solar manufacturers in his home country (he moved to Eugene 20 years ago) to break into the budding U.S. solar market, apparently with much success. With his connections to China he can take advantage of lower wages over there to sell a cheaper product here. As Yuan told The Oregonian; “We want to make solar panels so cheap that 80 percent of American households can use it without subsidies.”

Speaking of subsidies, Yuan and Centron have moved so fast in getting off the ground that they didn’t even bother to ask for subsidies from the state of Oregon. At least not yet, although if they build an assembly plant in Eugene as initially planned they could qualify for state incentives or grants.

Meanwhile many in Oregon, which already boasts large manufacturing plants from SolarWorld and Sanyo, are scratching their heads, although they do not as yet seem intimidated, citing solar as an already competitive industry.

Still, Centron’s motus operandi is eerily reminiscent of Wal-mart’s dominant foray into retail. They are acting as a gateway, a funnel, for Chinese manufacturers who will sell directly to Centron, who will in turn sell directly to installers.

According to the company, however, not all jobs will remain in China. Should they be blessed with success they plan to open several assembly plants in the US, beginning with Eugene. Right now Centron has 10 employees but a Eugene plant could employ another 200 to 300 more, including a customer support division.

Source: OregonLive.com

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