The decision by solar company Suntech Power Holdings Co to declare bankruptcy was likely a wise move, and it's now time for the local government to clean up the mess, experts said.

"It's a reasonable option for all the parties involved, including Suntech, the local government and its creditors," said an industry insider. "People don't know how much more money would have to be injected into the company to keep it afloat."

The company's debt is thought to amount to 7.1 billion yuan ($1.14 billion), owed mostly to nine Chinese commercial banks.