Global Buying Spree Is Saving Solar Panel Manufacturers

Bloomberg explains why the glut of panels that triggered the sector's woes a year ago is starting to disappear:  Developers installed 37.5 gigawatts of panels worldwide last year, up 22 percent from 2012, and that figure may increase as much as 39 percent this year, according to data compiled by Bloomberg.

That growth is starting to "sponge up" much of the glut, especially among Chinese manufacturers, that resulted from a buildup in the late 2000s, Pavel Molchanov, an analyst at Raymond James & Associates Inc. in Houston, said in an interview.  "That has made a real dent in the overcapacity."

China, which surpassed Germany to become the biggest solar market last year, may install more than 14 gigawatts this year, aiding domestic producers.  The Asian nation added a record 12 gigawatts of solar power in 2013, compared with 3.6 gigawatts a year ago, according to data from Bloomberg New Energy Finance.

Global Buying Spree Is Saving Solar Panel Manufacturers