Solar panel installations in China fell precipitously in June, as the government pulled back on subsidies after a record-breaking construction boom this year.
Solar installations in May reached nearly 100 gigawatts, equal to installing 100 solar panels nearly every second, according to the Asia Society Policy Institute. But installations fell below 15 gigawatts in June as project developers face the end of receiving fixed high rates for solar power and are transitioned by grid officials to less predictable market rates.
China’s solar market has boomed a bit too much in recent years, some officials believe; at the same time subsidized power rates are being removed, the government also introduced new restrictions on price cuts for consumer products, including solar panels, meant to stem a tide of bankruptcies as overproduction and intense competition between manufacturers leads to an all-out price war that ultimately hurts the country’s green energy ambitions.
