Demand for solar panels is on the rise in China and Japan. Sales have started to shine again during the past six months after two years of stormy weather. Many solar panel makers have responded to the bright news by expanding their production capacity.
China's solar power industry is starting to beam again. Overcapacity and trade disputes with the U.S. and the European Union had created a cloud over the sector and caused more than two years of poor business. But sales are brightening thanks to increased domestic demand and exports.
"Since the second half of last year, solar panels are selling very fast or even in short supply. That's because the anti-dumping case with the EU has been finalized and resolved. The Chinese government also has announced plans to build solar power generation sites with 14 gigawatts of capacity this year," said Peter Li at Zhejiang Astronergy.
Building solar power sites brought Zhejiang Astronergy 2.5 billion yuan revenue in 2013, 75 percent better than the year before. On the other hand, the revenue from solar panels remained flat as the profit margin slumped. Some say the chance to grow relies on designing and building solar power sites.
"The cost to generate electricity from solar power is dropping. With some government subsidies, we can afford and develop solar power sites. We think such a fast rate of growth can remain two or three years," Li said.
Many solar panel firms were forced to close over the past two years, including the giant Suntech Power. The industry is by no means less crowed now but those companies that are still in the market are bigger in size, and stronger in technology. The competition remains fierce.
