Recovery looms for world solar power sector

Next year will be pivotal in its development.

Deutsche Bank said the solar power sector is on the brink of a sustained period of momentum. Driving this upturn that will begin in 2014 will be a re-balancing in the supply and demand of polysilicon; the growth of new markets and stabilizing module prices.

Deutsche Bank believes the solar sector is at an inflection point and industry fundamentals are likely to improve further into 2014. It notes the sector has passed the tipping point for grid parity in more than 10 major markets worldwide and will likely maintain this momentum even with higher prices of polysilicon.

Demand for polysilicon could exceed supply by 2014 with the glut of polysilicon swallowed up and much production capacity, particularly in China, going offline.

The bank predicts tvhe rise in module prices leveling off at around US$0.70 per Watt due to the impact of tariffs on Chinese cells entering Europe in the third quarter of 2013, and levies on Taiwanese products entering the USA.

Rising electricity prices, a need for competitive generation sources and lowered balance of system costs will drive further improvement over the next several years.

Many large PV manufacturers have seen their share prices shoot upwards during the past month and Deutsche bank expects this to continue.