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