The price of Chinese solar panels is about to increase

The prices of solar panels made in China are about to rise, said Thursday at the head of one of the world's largest manufacturers the World Economic Forum in Davos, Switzerland.

China is home to the majority of global solar panel production, which was incredibly cheap. Solar panel prices fell about 30 percent last year after China cut subsidies, Reuters said. But now, companies like GCL that are large enough to survive are starting to recover.

"The party is over," Eric Luo, chairman of China's GCL System Integration Technology, told Reuters.

Small producers will probably have to close or consolidate, he added, leading to a price rebound of 10 to 15 percent over the next two years. Soon, the Chinese solar industry will be able to operate without any form of subsidy.

Northwest China, where sun and land are affordable, already exists and the rest of the country should do the same in the year. If you still need subsidies by 2020, said Luo, "you just stop."

Despite the recent effects of the US-China trade war, the United States continues to be an important market for solar panel producers. GCL is also expanding elsewhere, leading to 75% of its international solar panel shipments, Reuters said.