Higher profits typically stimulates greater investment spending. Consequently, the added revenue could fuel another surge in capacity, and by 2017, module-manufacturing capacity could hit 72%, compared to the end of 2013, pulling the industry toward the next potential bottom in the cycle, according to Cowen.

However, some observers argue that solar industry cycles may be more muted, going forward, as the pool of increased demand for a competitive alternatives to fossil-fuel-based energy generation absorbs excess solar capacity, compared to previous years.

Guggenheim Solar ETF

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

Max Chen contributed to this article.