China solar industry faces challenges, but rock-bottom prices to persist

Consolidation in China’s crowded solar power sector is pushing smaller players out of the market, but excess production capacity – with more on the way – threatens to keep global prices low for years.

China accounts for 80 per cent of solar module production capacity after years of subsidies, driving oversupply that has triggered a collapse in global prices and provoked import duties from trading partners to stave off being swamped by low-cost equipment.