Solar photovoltaic panel market chaos

Is China's solar industry overcapacity a problem?

Overcapacity in China's solar industry is emblematic of the challenges facing the world's second-biggest economy. High levels of state-guided industrial investment and low levels of household consumption mean many sectors produce more than the domestic market can absorb.

Why are China's solar panels so expensive?

China accounts for 80% of solar module production capacity after years of subsidies, driving oversupply that has triggered a collapse in global prices and provoked import duties from trading partners to stave off being swamped by low-cost equipment.

Will a sustained increase in solar component prices happen in 2024?

"As supply is still set to outpace demand in 2024 a sustained increase in component prices is unlikely to happen unless supported by policy changes", such as reforms to bidding for solar components that keep sales prices above input costs, said Rystad's Bakke. China has yet to announce plans for any such changes.

Will China impose trade restrictions on photovoltaics?

It would be the first of several waves of trade restrictions imposed against Chinese photovoltaics. Claims of dumping are contentious and hugely consequential. They’re often brought by oligopolists who have had their comfortable hegemony disrupted by cheaper foreign rivals.

What's happening with solar panels & polysilicon?

Module prices have dipped to $0.096 per Watt, the lowest level ever, while polysilicon at $4.7 per kilogram is below production cost. Most solar manufacturers are expected to report losses this year, their convertible bonds are showing signs of weakness, and some will not survive this cycle. BNEF clients can access the full report here.

Will supply constraints affect European Solar prices?

Supply constraints could put upward pressure on relatively stable European solar prices later this year as companies seek to preserve profit margins that are already razor thin, according to LevelTen. In China, the world's top solar product maker, producers are already raising prices to protect margins, leading to slower orders.