The solar industry believes market conditions will improve in 2013 because firms now have a consensus to stop price competition. In addition, firms that dumped products and disrupted prices now have lower inventory levels, hence the market may see prices stabilize.
Nevertheless, many firms have been facing debt problems since 2011. Solar makers in China have revealed that the problem of a shortage of funding still exists which may trigger some firms to file for bankruptcy in 2013.
Furthermore, some local solar subsidies in China have been delayed, putting additional financial pressure on solar firms.
Solar makers added that in the past, many China-based solar firms expanded capacity by setting up plants in various provinces and most of the funds were provided by local governments in order to attract more firms and create more job opportunities for the provinces. Therefore, when solar firms face operational problems, it is usual for local governments to help find solutions.