- Chinese manufacturers are causing a global oversupply of solar panels.
- Solar panels have become so cheap that some people are using them to put up fences.
- U.S. Treasury Secretary Janet Yellen is scheduled to discuss overcapacity during a visit to China starting Wednesday.
Chinese manufacturers are producing so many solar panels that the resulting global glut is causing prices to plummet.
Solar panels — 80% of them made in china – It is so cheap that it is currently used in Germany and the Netherlands to cover garden fences. financial times It was reported on Tuesday.
Solar panels are typically installed on rooftops where they can capture the most sunlight, but because of the oversupply, people in these two countries are now installing panels on fences. According to FT, this also saves on the cost of expensive labor and scaffolding required for roof installation.
Fences covered with solar panels are also becoming more popular. England, North America, Australia.
“Why put up a fence when you can put up tons of solar panels even if they’re not exactly aligned with the sun?” said Martin Blau, head of climate research at BNP Paribas Exane. told FT.
Global solar panel supply is expected to reach 1,100 gigawatts by the end of this year, three times more than demand, the International Energy Agency wrote in a paper. Report released in January.
Spot market prices have already fallen by half in 2023 and could fall by another 40% by 2028, the agency added.
China’s dominance in the solar panel market is currently in oversupply, meaning manufacturers in other regions such as the US and Europe are unable to compete effectively.
In the US, there are concerns about an oversupply of cheap solar panels made in China. Treasury Secretary Janet Yellen Radar as he heads to China on Wednesday for talks with Chinese government officials. The trip, scheduled to end Tuesday, will be his second trip to China in the past 12 months.
“During her engagement with China, Secretary Yellen has made efforts to protect American workers and businesses, including pressuring China on unfair trade practices and emphasizing the impact of China’s industrial overcapacity on the global economy. We insist on being treated fairly,” the Ministry of Finance said in the report. Yellen’s visit was announced on Tuesday.
last week, Yellen said: At Georgia’s Suniva Solar Plant, she is “concerned about the global ramifications of the overcapacity we’re seeing in China,” which could hit new energy industries like solar power, electric vehicles and lithium-ion batteries. He said that he is giving
The Chinese government is defending what it calls. “New three industries” The economy is driven by the proliferation of solar power, electric vehicles, and lithium-ion batteries. China is struggling to shift away from its dependence on the real estate industry, which is currently mired in a debt crisis.
“China’s overcapacity is distorting global prices and production patterns, hurting not just American businesses and workers, but businesses and workers around the world,” Yellen said, announcing her next visit to China. He added that he would raise the issue of overcapacity.
“I would like to convey my belief that overcapacity poses risks not only to American workers, businesses, and the global economy, but also to the productivity and growth of the Chinese economy,” Yellen added.
Chinese manufacturers are also feeling the heat from overproduction of solar panels.
last month, longi green energy technology, The world’s largest solar cell maker has announced it will lay off thousands of workers, citing overcapacity and low prices.
