The outlook for the global solar industry has dimmed from last year. The industry is projected to grow relatively little this year. The slump is due to lower government subsidies and excessive capacity expansion over the past six months. Spot market prices of solar cells and wafers have declined 40% since January and in many instances are lower than production costs. The industry is now at a turning point, according to solar industry executives and analysts. Market leaders will distinguish themselves from weaker companies, which will have to merge or fold. Demand from China may boost solar panel production, as the country implements a new feed-in tariff for solar projects. Together, China and Taiwan make up about 75% of global solar production. Taiwan in particular has been affected by the slowdown, yet some Taiwanese producers have been able to boost capital with global depository receipt listings.

Source: Financial Times