By Gerard Wynn
LONDON, Oct 9 (Reuters) - Solar market fundamentals driven by demand in Asia remain strong, meaning installed capacity should continue to grow at current rates and could accelerate given expected breakthroughs in residential electricity storage.
Until recently, equity investors did not necessarily feel the benefits of market growth, as this was driven by lower module prices and over-capacity which in turn have crushed manufacturing profit and triggered bankruptcies.
But now, stabilising prices have begun to cheer investors, as margins recover.
There is still over-capacity, however, meaning module prices could resume their downward path.
Sector growth will depend on a range of factors including Asian demand, a continued fall in module prices, and lower installation costs, while a breakthrough in battery storage for residential systems could see solar power undercut utility tariffs, in a possible electricity market game-changer.