According to the German "Handelsblatt" website reported on February 1, China's photovoltaic industry, the current capacity growth rate is even more than the growth rate of demand, it is worth paying attention to. According to the report, no country has installed as many photovoltaic power generation equipment as China. 2023, China's new installed capacity of photovoltaic power generation of nearly 217 gigawatts, almost 2.5 times as much as 2022, accounting for more than half of the global new installed capacity of photovoltaic power generation.

The report also said that the current capacity growth rate even exceeds the demand growth rate. The global PV market is characterized by severe oversupply and the result is a fierce price war.

The photovoltaic industry is involved in China's industrial strategy in the "new three kinds", namely, new energy vehicles, lithium batteries and solar cells. These future-oriented industries are planned to become the growth engine of the world's second largest economy.

The report goes on to say that as the US and India try to restrict imports of photovoltaic modules from China, the Chinese market leader is trying to sell its products in Europe. Customs data shows that in the first 11 months of 2023, China's exports of solar cells increased by 42.4% in volume year-on-year, but only 1% in value. In addition to exchange rate factors, the reasons for this also include significant price reductions for photovoltaic technology equipment in China.

According to an analysis by Wood Mackenzie Consulting, the cost of production of photovoltaic modules by Chinese manufacturers was reduced by about 42% in 2023, which is considerably lower than that of Indian, European and American manufacturers.

According to experts, the lower prices are also due to the huge production volume of Chinese manufacturers. In addition, Chinese manufacturers also have advanced technology, dominating the entire value chain from refining raw materials to producing PV modules.

Recently, key industry representatives have also warned about overcapacity, the report added. According to Chinese media reports, the head of PV module maker Trina Solar said that it is impossible to sustain the industry chain if it remains unprofitable. In the process, established companies have a better chance of survival than new entrants, and the market reshuffle will be more brutal than previous industry adjustments.