“The company’s solar-panel capacity will rise to 3.8 gigawatts this year from about 3.4 gigawatts at the end of June. Annual solar-cell capacity will rise to 2.8 gigawatts from 2.4 gigawatts in 2013, Gao said” (renewablenergyworld.com).
What does this mean for the solar industry? Solar companies are calling for government support and for financial support from China’s banks so that they can upgrade technology and thus produce at higher capacity. With pressure from American shareholders, the solar industry is expected to deliver dividends, which they have not done since their initial public offering in 2006.
Experts believe that with the banks support and more lenient loans, the companies would be able to update their technology, produce at higher capacity, and produce the dividends the shareholders wish to see. Under their current situation, these firms cannot provide in the facet in which they are desired:
“The company has yet to formulate plans to pay dividends to shareholders because U.S. –based investors, mostly institutional holders, are focusing more on profitability…” (renewableenergyworld.com).
Considering the recent drought in the industry, it has made a substantial recovery and is now progressing towards being a profitable industry again after oversupply led several manufacturers into bankruptcy. Chinese solar is a hot commodity once again.