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Over recent decades, China has risen to a preeminent global position in both solar photovoltaic (PV) adoption and production, a feat underpinned by a suite of pivotal policy measures. With a burgeoning demand for PV systems on the horizon, there is an urgent need to reassess past policies and chart new directions.
The measures came as a way to promote the healthier development of China's fast-developing PV industry, which has already made new breakthroughs in the past year, setting records in annual new installations, new distributed PV installations, total solar power installations and PV exports, said the China Photovoltaic Industry Association.
China's PV industry has established a preliminary policy system. Industrial policy is lagged compared with the market development. Reducing carbon footprint of PV products is critical for policy design.
As a result, in the decade through to 2020, the cost of solar panels fell about 85 per cent. Earnings have deteriorated: about a third of China’s listed solar companies reported a loss last year and several went bankrupt.
With the largest installed solar PV capacity worldwide since 2015 and a dominant position in PV product manufacturing and export, the industry continues to expand. Even in the pursuit of carbon neutrality, China's potential for PV growth remains significant.
The rapid growth of renewables in important markets such as south-east Asia and India could start to redefine the sector. China can help itself, somewhat. As the world’s largest consumer of solar panels, it has been ramping up installation plans through new large-scale projects in the region.
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