Solar Power Slowdown

The halcyon days of China’s solar power industry seem to be ending after regulators decided to reduce subsidies to cool down runaway photovoltaic (PV) growth. The National Development and Reform Commission, the Ministry of Finance and the National Energy Administration issued the “2018 Solar PV Power Generation Notice,” which said a cap of 10 gigawatts would be imposed on the distributed solar power generation market for 2018, which was almost exceeded by late May. Policymakers are increasingly concerned about the “overprotected” industry, overcapacity and wasted investment. The reduction of solar power subsidies and excessive growth are likely to bring in a reshuffle of the industry, enabling the sector to focus on quality rather than quantity. But many PV enterprises will have to close due to the more stringent policies.