Photovoltaic industry faces challenges: This is how Chinese production surpluses affect the European market.

Photovoltaic industry faces challenges: This is how Chinese production surpluses affect the European market.

According to a report from www.fr.de,

The European photovoltaic industry is once again faced with a major challenge: excessive imports of solar modules from China. Chinese manufacturers dominate with a market share of over 80 percent and are putting European producers under pressure with dirt-cheap exports. Overcapacity in China continues to grow and is leading to dramatic price drops. Prices for solar modules have fallen to a record low and are now barely higher than those in China. This leads to accusations of dumping, as the Chinese solar industry is said to sell its surpluses below production costs. This has sparked a debate about solar dumping and is leading to calls for support from European solar module manufacturers.

The market situation is complicated as the EU faces the difficult decision of either embracing cheaper Chinese imports or protecting domestic production, which could make the energy transition more expensive. The EU already imposes anti-dumping and anti-subsidy duties on imported solar glass from China, but a similar measure on solar panels is difficult because pinpointing dumping practices and subsidies is controversial.

This difficult market situation has far-reaching effects on the European financial sector. The uncertainty and strong price fluctuations in the photovoltaics market can impact investments in renewable energies. Companies in the industry could fear cost increases due to import tariffs and quality standards. The demand for funding plans and an adjustment to EU regulations to support European solar module manufacturers could have an impact on government funding and subsidies.

It remains to be seen how the EU will respond to the current challenges facing the photovoltaic industry and what measures will be taken to protect domestic production and reduce dependence on Chinese imports. Developments on the solar market are closely linked to political decisions and will have a significant impact on the financial sector in Europe in the coming years.