Solar ETFs: Demand Outpacing Supply for First Time Since 2006 | Page 2 of 2 | ETF Trends

“The cell and module glut has certainly dried up,” Stefan de Haan, a solar analyst at IHS Inc., said in the article. “There is no massive overcapacity anymore.”

The sector could install as much as 52 gigawatts this year and 61 gigawatts in 2015, compared to 40 gigawatts in 2013 and over seven times what developers demanded five years ago.

Meanwhile, the solar industry has about 70 gigawatts of production capacity, which includes older equipment that is not profitable. De Haan believes usable capacity is closer to 59 gigawatts.

Guggenheim Solar ETF

For more information on the photovoltaic panel industry, visit our solar category.

Max Chen contributed to this article.