Solar companies cut costs and prices sharply to maintain market share. That led to a few low-cost survivors while many other competitors were driven out of business in China and around the world. The deserted blue-walled factory of Hunan Sunzone, left, which once made solar panels in Changsha, China.
China’s solar panel domestic industry is in upheaval. PHOTO: NYTIMES CHANGSHA – Over the past 15 years, China has come to dominate the global market for solar energy. Nearly every solar panel on the planet is made by a Chinese company. Even the equipment to manufacture solar panels is made almost entirely in China.
The plan seems to be working. Last year, China installed a record-breaking 87.4 GW of solar capacity, 59% more than in the previous year, according to China’s National Energy Administration. This takes the country’s total installed photovoltaic capacity to 392.6 GW.
China’s provincial governments have introduced several policies and subsidies to incentivise rooftop solar installation in residential buildings and factories, to support China’s target of having 33 per cent of its electricity generation come from renewables by 2025, as mentioned in the country’s latest five-year plan for the 2021 to 2025 period.
The government decided 15 years ago to put extensive support behind solar power, and then let the companies claw it out. Beijing has shown a high tolerance for letting firms stumble and even fail in large numbers. Robots at a factory in China’s Xinjiang region in May.
Compounding the problems facing China’s solar energy companies is the rapid disappearance of local subsidies. Local governments are running out of money as a housing crisis makes it hard for them to sell long-term leases on state land to real estate developers — previously their biggest source of cash.
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China Rules Solar Energy, but Its Industry at Home Is in Trouble
Over the past 15 years, China has come to dominate the global market for solar energy. Nearly every solar panel on the planet is made by a Chinese company.
Get Price
Panels put rural homes on energy map
The administration also noted the huge potential for distributed solar PV power development in rural China, saying almost 27.3 billion square meters of rooftops belonging to more than 80 million ...
Get Price
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2 · Global consultancy Rystad Energy expects 255 GW new solar PV installation from China in 2024, which is at the same level as the forecast after adjustment. Another surge in installation toward the ...
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