Solar Power World

  • Home
  • Top Solar Contractors
  • Articles
    • Most Recent Posts
    • News
      • Latest News Items
      • Solar tariffs
    • Featured
      • Latest Feature Stories
      • Contractor’s Corner
      • Trends in Solar
      • The Solar Explorer
  • Policy
    • Monthly Snapshots
  • Markets
    • Residential
    • Commercial
    • Community Solar
    • Utility
  • Products
    • 2021 Top Products
    • Batteries and Storage
    • Inverters
      • Global Manufacturing Locations
    • Racking and Mounting
    • Software
    • Solar Panels
      • U.S. solar panel manufacturers
      • Global Manufacturing Locations
  • Subscribe
  • Resources
    • About SPW
    • Digital Issues
    • Event Coverage
    • Podcasts
    • Product Manufacturing Locations
      • Global Inverter Manufacturing Locations
      • Global Solar Panel Manufacturing Locations
      • U.S. solar panel manufacturers
    • Solar Classrooms
    • Suppliers
    • Videos
    • Webinars / Digital Events
    • Whitepapers
  • Leadership
    • Vote for the 2022 Leaders!
    • 2021 Winners
    • 2020 Winners
    • 2019 Winners
    • 2018 Winners

Why China’s abrupt halt on solar development may affect U.S. module buyers

By Kelly Pickerel | June 4, 2018

Share

On Friday, China’s National Development and Reform Commission, the Ministry of Finance and the National Energy Administration released a joint statement essentially ordering all new utility-scale and distributed generation (DG) solar projects in the country to stop until further notice. The government also reduced tariffs on solar-generated electricity by about 6.7 to 9%.

Since then, many Chinese solar companies have seen significant drops in stock prices, including Sungrow and LONGi.

These actions are aimed at getting a grip on state-supported solar projects which have led to around a US$15.6 billion deficit in China’s renewable energy fund. The government no longer wants to pay for solar development.

DG install volume is now capped at 10 GW (last year, DG accounted for 19 GW), and statements from Asia Europe Clean Energy (Solar) Advisory Co (AECEA) estimate that the country had already installed 10 GW before the announcement was made. All utility-scale installs are essentially blocked at this point as the government abolished a 13.9-GW utility-scale goal. Last year, the country deployed almost 34 GW in utility-scale, and already the government had requested a smaller number.

Roth Capital Partners downgraded China’s 2018 forecast from 52 GW to 35 GW, with an expected overcapacity of as much as 34 GW.

So, what does that mean for the United States? Chinese module suppliers have been pumping out product to meet China’s expected demand. There are also new manufacturing sites popping up across the globe, planning to produce at full capacity. In an oversupply situation, tariffed modules entering the United States could be priced way lower than expected. Large-scale U.S. installers may catch a break, but U.S. module manufacturers may be back competing against cheap Chinese imports.

Story developing…

About The Author

Kelly Pickerel

Kelly Pickerel has over a decade of experience reporting on the U.S. solar industry and is currently editor in chief of Solar Power World.

Tell Us What You Think! Cancel reply

Related Articles Read More >

Enphase IQ8 microinverter system now UL 1741-certified
Hoymiles releases rapid shutdown solution for wide range of input currents
Electriq Power and SEDC Solar partner on no-cost solar + storage systems in D.C.
Nextracker commissions solar tracker manufacturing line in Arizona

SPW Digital Editions

Solar Power World Digital EditionBrowse the current issue and archived issues of Solar Power World in an easy-to-use, high-quality format. Bookmark, share and interact with the leading solar construction magazine today.

Contractor's Corner Podcast

May 23, 2022
Contractor’s Corner: Solar apprenticeships are key to meeting renewable energy goals
See More >

Solar Policy Snapshot

Solar policy differs across state lines and regions. Click to see our monthly roundup of recent legislation and research throughout the country.

Read More >

Solar Power World
  • Top Solar Contractors
  • Solar Articles
  • Windpower Engineering & Development
  • Battery Power Tips
  • Top Products
  • Leadership
  • About/Contact Us
  • Subscribe
  • Advertising
  • WTWH Media

Copyright © 2022 WTWH Media, LLC. All Rights Reserved. Site Map | Privacy Policy | RSS

Search Solar Power World

  • Home
  • Top Solar Contractors
  • Articles
    • Most Recent Posts
    • News
      • Latest News Items
      • Solar tariffs
    • Featured
      • Latest Feature Stories
      • Contractor’s Corner
      • Trends in Solar
      • The Solar Explorer
  • Policy
    • Monthly Snapshots
  • Markets
    • Residential
    • Commercial
    • Community Solar
    • Utility
  • Products
    • 2021 Top Products
    • Batteries and Storage
    • Inverters
      • Global Manufacturing Locations
    • Racking and Mounting
    • Software
    • Solar Panels
      • U.S. solar panel manufacturers
      • Global Manufacturing Locations
  • Subscribe
  • Resources
    • About SPW
    • Digital Issues
    • Event Coverage
    • Podcasts
    • Product Manufacturing Locations
      • Global Inverter Manufacturing Locations
      • Global Solar Panel Manufacturing Locations
      • U.S. solar panel manufacturers
    • Solar Classrooms
    • Suppliers
    • Videos
    • Webinars / Digital Events
    • Whitepapers
  • Leadership
    • Vote for the 2022 Leaders!
    • 2021 Winners
    • 2020 Winners
    • 2019 Winners
    • 2018 Winners