Terry Wang talks about the conflicts of the solar energy industry: managing costs while reacting quickly to technological developments, and balancing high product performance with longterm reliability.

The New Economy: Solar energy is a fast moving, fast growing sector so how important is it to have this programme of product development?

Terry Wang: Is it critical that this is a fast moving industry. It as been out there for a long time but just in recent years has it begun to boom. This is due to can increase in awareness of global warming, being environmentally friendly and renewable energy becoming an increasingly important source of energy. So as a fast passed industry, it is critical that we move and think fast, to be proactive and build the correct business models that we need to move forward.

The New Economy: Increasingly it is a more competitive market so in terms of the cost structure, how do you maintain an edge?

Terry Wang: The nature of the industry is to start with a high cost structure, because of the materials and technology processes involved which contribute high costs compared to renewables. But this is the area that gives a company like us the opportunity to continue to improve, to challenge ourselves to reduce the cost as much as we can. Solar system is not like a cell phone in that it is a commodity with a turn over of a few months or a year, it is a reliable system that should lost for a long time, by industry standards about 20 – 25 years. It requires high quality and high performance in the long term reliability of the product, so that the user or consumer§ can rely on the system to generate electricity for 20 – 25 years. This is why quality is the real issue.

The New Economy: So it quality not just the cost structure that matters in this industry?

Terry Wang: I think it is a combination of them both. Quality is the basis from which the industry can become more healthy and a company can be sustained in growing, as well as a base for the branding of a product. The cost is a critical factor for a company to survive and continue to be successful, because of the pressure on solar systems in pricing we may continue to see a downward trend in future years and who ever has a super cost structure, they will be the final winner.

The New Economy: So like elsewhere in the energy sector, you have to take a long term view?

Terry Wang: No we are the lowest cost panel manufacturer in the world in the sector. We have to lay out our strategy of how to maintain that advantage moving forward. Secondly we have to continue to make improvements in quality assurance and make sure our product is in line with our brand and to meet our increasing customer needs. Thirdly, moving forward we need to think about how we can add value to the customer, by providing a different solution across different product applications are areas that are going to be a challenge in the long term strategy.

The New Economy: Interestingly, as a company, Trina Solar seems to have an international outlook, not just in distribution and sales but, in the management team itself?

Terry Wang: Yes our management team are from all over the world, currently more than 16 countries. The solar sector and market is mostly in Europe and the US and China is growing as well, it is globalised. So we need a team that can face the different market requirements and the requirements from different customers in different regions. Also the multi- national culture will help us to aim for the global stage and to play a leading role on that stage.