By Paul Homewood
Repost from Irina Slav’s Oilprice.com:
Chinese solar power companies shed a third of their workforce last year, amid intense competition and overcapacity that drove losses, Reuters has reported, citing company filings.
Also, last year and this year so far, more than 40 sector players have gone bankrupt, delisted, or been bought by other companies from the industry, the report also said, citing a report from the country’s solar industry association. The layoff numbers stand at a total of 87,000 people, from five of the biggest solar businesses in China.
“The industry has been facing a downturn since the end of 2023,” a Morningstar analyst told Reuters. “In 2024, it actually got worse. In 2025, it looks like it’s getting even worse,” Cheng Wang also said.
The downturn follows three years of frenetic expansion sponsored by the government, which elevated solar to a key industry for economic growth. This expansion resulted in overcapacity, which sank prices and destroyed profits for many.
Full story here.
The take home message is that solar panels are not as cheap as the renewable lobby would have you believe. Overcapacity in the solar industry, funded by government hand outs in China have depressed prices well below the cost.
Eventually prices will start to rise once the surplus production has been sold off.
Click this link for the original source of this article.
Author: Paul Homewood
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