After years of turmoil — marked by overcapacity, plunging prices and declining investor confidence — China’s solar sector is showing faint but discernible signs of recovery.
In 2010, Europe’s dominance in the global solar panel market had appeared unassailable. The region accounted for about three-quarters of global solar photovoltaic installations, with Germany leading by a wide margin. Then China decided to break into the market. Its plan worked, perhaps too well.
While the People’s Republic managed to snatch market share from Germany, the cost has been a plague of overcapacity and falling prices. Investors have avoided the sector for its unappealing outlook and bleak growth prospects. But there are now signs that the sector may be approaching a bottom.