China' new installations of solar power are expected to slow considerably this year and over the next five years as the industry comes to terms with a new subsidy-free era, the chief executive of a leading domestic solar manufacturer said.

''I think from now until 2025 we are probably looking at 20-25 gigawatts (GW) per year,'' said Eric Luo, of GCL System Integration Technology (GCL), on the sidelines of the Fortune Sustainability forum in the southwestern province of Yunnan. ''It is purely market driven.''

China's new solar installations hit a record 53 GW in 2017, but slowed to 41 GW in 2018 after the government announced a massive scaling-back of subsidies in order to ease pressures on the transmission system and reduce a subsidy payment backlog estimated at more than 100 billion yuan ($14 billion).

New additions hit 11.4 GW in the first half of this year, and Luo said it was highly unlikely that would increase in the second half.

Most new installations in 2019 have been unsubsidized, and that was now the industry norm, he said.

Falling domestic installations have raised fears of overcapacity among solar equipment manufacturers, with volumes still rising, but Luo said the additional production could be absorbed by a 25% annual increase in overseas demand.

He estimated global demand for solar equipment would reach 115-120 gigawatts this year, including around 25 GW of domestic Chinese demand. That compares with around 80 GW two years ago.

(Writing by Tian Zhang  Editing by Harry Huo)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.

Share this article

Connect with us