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Power China The Almighty Buck Technology

Party Is Over For Dirt-Cheap Solar Panels, Says China Executive (reuters.com) 170

The president of a top-10 maker of solar panels said the global solar power industry is about to lose a major competitive windfall as prices of Chinese-made solar panels begin to recover after a collapse last year. "The party is definitely over," said Eric Luo, president of China's GCL System Integration Technology Co. Reuters reports: Solar panel prices tumbled around 30 percent last year after China, the world's largest producer, cut subsidies to shrink its bloated solar industry, pushing smaller manufacturers to the brink of collapse. To raise cash and stay afloat, manufacturers cleared inventory and diverted sales offshore, sending prices into a downward spiral - offering up a windfall for solar power generators and investors in solar farms.

Luo, speaking to Reuters at the World Economic Forum in the Swiss ski resort of Davos this week, said GCL's vertically integrated business model cushioned it from the downturn in prices as its solar farms benefited from cheaper panels. The pain will mostly be felt by smaller Chinese producers, which lack international supply chains, triggering industry consolidation or forcing them to close, he added. Luo said solar panel prices were already stabilizing and he expected them to rebound by 10 to 15 percent as the Chinese industry consolidates over the next year or two.
Luo also said that China was getting to the point where the solar industry could operate without any form of subsidy. Northwest China, where the sun is more plentiful and land is less expensive, has already reached that point, he said.
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Party Is Over For Dirt-Cheap Solar Panels, Says China Executive

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  • Bright side (Score:5, Informative)

    by PopeRatzo ( 965947 ) on Saturday January 26, 2019 @02:48AM (#58024988) Journal

    The good news is there are now at least 23 companies making solar panels in the USA, and their prices are becoming more competitive. It'll get even better once the dumb trade war is over.

    • Re: (Score:3, Insightful)

      You can thank the 30% tariff that President Trump put on Chinese panels for assisting those US manufacturers...
    • The decoder-ring for your statement is "trade war."

      That shows that when you say "panel," you only mean final assembly of the parts.

      If the trade war continues, expect old chip fabs in the US to be converted to making the whole thing.

  • China pretty much has cornered production on solar panels.

    Now they'll start ratcheting up the pricing.

    • by PPH ( 736903 )

      Now is the time to buy a house in California before the solar roof prices drive everyone to live in tents in the city parks.

  • All those subsidies/dumping that China does to steal Western manufacturing is coming home. Solar City is going to have a heyday. They are ramping up production of efficient panels as well as their tiles. Hopefully, the rest of Western solar panels makers will do ok. Also, hopefully trump/europe will impose same same tariffs on any vehicles manufactured by Chinese companies that will attempt to dump on the west
  • Disposal costs, government subsidies etc.
  • This was simply dumping to dstroy competitors
    Funded by China

    • by King_TJ ( 85913 )

      Yep! Exactly. They tried to dump substandard quality panels on foreign markets like the USA, hoping they'd put the competition under. But ultimately, it didn't work and China is tired of paying so much to subsidize their manufacture, to keep selling them below their cost. A lot of the companies offering the "no money down solar loans/leases" were using the cheapest panels they could source from China, and people wound up with PV solar installations that degraded, only outputting 60% or so of their rated pow

  • If it takes more than 10 years to break even, those solar cells will not sell at all. The price will always depend on the cost of electricity.

A physicist is an atom's way of knowing about atoms. -- George Wald

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