Solar companies cut costs and prices sharply to maintain market share. That led to a few low-cost survivors while many other competitors were driven out of business in China and around the world. The deserted blue-walled factory of Hunan Sunzone, left, which once made solar panels in Changsha, China.
China produces most of the materials and components for the world’s solar panels, in addition to the panels themselves. Chinatopix, via Associated Press Something similar is happening in the automotive sector. Annual car sales in China are around 25 million, more than any other country but barely half the country’s ability to make vehicles.
China is spending billions of dollars on new factories to produce polysilicon, used to make photovoltaic cells for solar panels. Global capacity has already been boosted by more than a quarter in the past two months, and it will double by early next year.
The supply chain snarl that tripled the price of a key raw material for solar panels is about to get fixed, clearing the way for a renewed boom in the use of the clean energy technology. China is spending billions of dollars on new factories to produce polysilicon, used to make photovoltaic cells for solar panels.
The government decided 15 years ago to put extensive support behind solar power, and then let the companies claw it out. Beijing has shown a high tolerance for letting firms stumble and even fail in large numbers. Robots at a factory in China’s Xinjiang region in May.
Compounding the problems facing China’s solar energy companies is the rapid disappearance of local subsidies. Local governments are running out of money as a housing crisis makes it hard for them to sell long-term leases on state land to real estate developers — previously their biggest source of cash.
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