China’s top solar panel companies estimated they lost up to $5.5 billion last year despite the government’s efforts to rein in a punishing price war.
The country’s solar installations have surged but were outpaced by a massive supply glut; the companies’ quest for profitability will test the effectiveness of Beijing’s campaign to stamp out so-called “involution,” excessive competition that has plagued other domestic industries. The solar sector is also facing headwinds from rising silver costs.
China’s aggressive renewable energy push has seen cheap green power spill beyond its borders, and the “bizarre dynamics have spread” with it, WIRED wrote: Chinese solar panels, for instance, have led to negative electricity prices in Germany.
