Sunday 22 Dec
China is poised to set a new record for solar installations this year, despite challenges facing the component manufacturing sector, including falling prices and shrinking profit margins.
The country's newly installed solar capacity is projected to reach between 230 and 260 gigawatts in 2023, according to Wang Bohua, chairman of the China Photovoltaic Industry Association. This exceeds last year's record of 217 gigawatts and surpasses the association's February forecast of 190-220 gigawatts.
Wang attributed the accelerated
growth to several factors, including the rapid development of solar power
plants in China's deserts and government initiatives to encourage rooftop solar
installations. Additionally, the pace of grid construction has significantly
improved, enabling the transmission of solar power to remote demand centers.
The robust demand for solar
panels in the world's largest market provides a much-needed silver lining for
solar panel manufacturers. However, overcapacity has driven prices to record
lows, leading to billions of dollars in losses and forcing some smaller
producers to cease operations.
In response to these challenges, the Chinese government has issued a draft regulation aimed at curbing the expansion of solar power generation projects. The decline in solar panel prices has also resulted in a 45% decrease in the production value of solar panel manufacturing companies in the first nine months of the year, amounting to 570 billion yuan ($78 billion). Furthermore, exports have suffered a 35% decline in the first ten months of the year, totaling $28 billion.
