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 China's crowded solar power sector keep global prices low?

Consolidation in China's crowded solar power sector is pushing smaller players out of the market, but excess production capacity - with more on the way - threatens to keep global prices low for years.

Will China's Energy Policy reduce solar PV prices?

“If these are all true, it will send a positive signal to the solar PV industry, as such policies will suppress the continued decline of solar PV prices,” said Lin Boqiang, dean of Xiamen University’s China Institute for Studies in Energy Policy.

How does China's solar industry contribute to economic growth?

China's solar industry generated 2.5 trillion yuan ($346 billion) in investment, goods and services last year, according to a study by think tank Carbon Brief, making it the top contributor to the country's economic growth as investment poured in.

Are Chinese solar panels cheaper than US solar panels?

Oversupply pushed prices of finished solar panels in China down 42% in 2023, making Chinese panels more than 60% cheaper than U.S.-made equipment, with some module-only manufacturers taking orders at negative margins to preserve market share, said Wood Mackenzie analyst Huaiyan Sun.

Why are China's solar companies undercuting each other?

China’s world-dominating solar firms have been forced to sell below cost after a breakneck buildup in capacity to feed China’s renewables boom. Companies are undercutting each other to maintain market share, and most are expected to report losses this year, BloombergNEF said in a report earlier this month.