Solar panel prices to stay low for longer

A raft of measures by the Chinese government and the nation’s solar industry is yet to reduce overcapacity meaningfully, with the price of panels expected to remain low for most of 2025, according to a report.

“While efforts are likely to cool investments in new production capacity, this does not mean that a sharp market correction will be induced by the policy measures,” said Joseph Johnson, an associate director at consultancy Clean Energy Associates, which compiled the report.

China and its solar industry are trying to turn a corner after profits slumped following the start of a wave of new factories, which flooded the market and drove panel prices lower. Last year, companies signed up to a programme of self-discipline that included quotas for how much they could produce.

Other measures that have been promoted by the ministry of industry & IT and the China Photovoltaic Industry Association include stricter investment and efficiency standards for manufacturing, and a price floor for bidding on solar projects.

The CEA added that patent litigation is heating up and producers are using IP claims to block rivals in markets such as the US, EU, Japan and Australia. That’s already influencing decisions by suppliers, said the consultancy, which provides due diligence and engineering services for solar projects.  — (c) 2025 Bloomberg LP

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