One pocket of strength he sees in the industry: High-quality and low-cost Chinese module producers such as Suntech Power Holdings ( STP ), Yingli Green Energy Holding ( YGE ), Trina Solar ( TSL ), and Canadian Solar ( CSIQ ), which "appear to be winning share in the global market because their costs are so much below [those] of Western or Japanese suppliers." Their cost advantage goes beyond just cheaper labor to include free land from the Chinese government to build factories on, subsidized electricity, tax breaks, and a much lower cost of capital from banks than is available in other parts of the world. "And all [their] component suppliers for glass and copper wire, what's called junction boxes, aluminum framing, and some of the chemicals that go into making solar panels are all benefiting from these same five or six things," he says. That enables suppliers to charge module manufacturers less for their products as well.