A solar panel factory in Jiujiang, China
Overcapacity looms in China’s solar PV sector
Government net-zero targets drive investment in solar panel production by new entrants and existing players, UBS analyst says
China’s solar PV industry is likely to face overcapacity this year as new entrants pile into the production of solar panel components, spurred by the Chinese government’s decarbonisation ambitions, an analyst at the UBS Greater China Conference in Shanghai said on Monday. China’s solar PV sector has grown increasingly alluring to outsiders since Beijing announced its “dual carbon” goals of peaking emissions before 2030 and then achieving net-zero emissions before 2060. The outlook for solar PV demand in China has arguably never been stronger, with Beijing aiming for non-fossil fuels to supply at least 25pc of the country’s primary energy mix by the end of this decade compared with 15.9pc in
Also in this section
12 March 2026
Role of world’s largest carbon cap-and-trade market under scrutiny as war in Iran threatens to drive EU energy costs to unsustainable levels
10 March 2026
Europe urgently needs to bring more projects to FID, as CCS investors warn they might divert capital to faster-growing regions
9 January 2026
A shift in perspective is needed on the carbon challenge, the success of which will determine the speed and extent of emissions cuts and how industries adapt to the new environment
2 January 2026
This year may be a defining one for carbon capture, utilisation and storage in the US, despite the institutional uncertainty
