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.

What is China's production capacity for solar modules?

At the end of 2023, China's annual production capacity for finished solar modules was 861 gigawatts (GW) equivalent according to China Photovoltaic Industry Association data, more than double global module installations of 390 GW.

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.

Will China module prices fall?

Buyers will wait as long as their project allows them to do so, explained one veteran market observer, adding that he did not expect falling module prices to level off. OPIS expects significant price volatility ahead as buyers and sellers alike adopt a wait-and-see approach to the China module market’s direction.