- Back to 31.5.2018:
China solar industry saw rapid growth in the years leading up to May 31, 2018, driven by initiatives like the Photovoltaic Leader Plan and the Thirteenth Five-Year Plan. However, the industry faced challenges with subsidies and policy changes, leading to significant fluctuations. The “531 New Policy” in May 2018, aimed at reducing subsidies, caused disruption in the industry, leading to the suspension of operations for many distributed development enterprises. - China solar industry in 2024:
The period from 2021 to 2023 witnessed a resurgence in the photovoltaic industry, driven by global carbon neutrality goals and China’s Fourteenth Five-Year Plan. Despite this growth, manufacturing sectors across the photovoltaic supply chain faced losses due to plummeting prices. Despite the industry’s growth, manufacturers struggled with declining profits and overcapacity. - Overcapacity:
The past year has seen unprecedented overcapacity across the photovoltaic supply chain, with record-high production levels of materials like polysilicon, silicon wafers, cells, and modules. Despite a surge in global demand, the mismatch between production and demand has led to severe overcapacity issues, with the potential for excess inventory by the end of 2024. - Self-Inflicted Challenges:
Recent reports indicate extended shutdowns, layoffs, and resignations within the photovoltaic industry. Despite modest declines in cell prices, pure module manufacturing enterprises struggle to compete with vertically integrated counterparts, leading to closures and layoffs. The overcapacity crisis, exacerbated by intense competition and falling prices, has led to significant challenges for the entire industry.
This reflection underscores the volatile nature of the photovoltaic industry, marked by periods of rapid growth followed by overcapacity and market challenges; eventhough, we still believe China solar industry will growing inevitably, the process is a good thing to make solar industry better as cut the bad solar companies out of it, china solar market will to providing better products to end-users after this period