Europe’s vision of bolstering green energy generation through locally made solar panels faces a setback as the continent grapples with an overwhelming surplus of solar panels, primarily originating from China.
Oversupply Challenges European Ambitions
A fierce manufacturing race in China has resulted in a surplus of solar panels flooding European markets, leading to a significant drop in prices. Despite Europe’s aim to triple solar power capacity by 2030, the influx of cheaper Chinese alternatives has disrupted local manufacturing plans.
Impact on European Manufacturers
European Solar Manufacturing Council (ESMC) warns of impending bankruptcies among local manufacturers due to the surge in cheaper imports. The crisis has prompted calls for urgent measures to support the sector, including proposals for the EU to purchase excess solar panels.
Global Ramifications of Oversupply
China’s rapid expansion in solar panel production has outpaced global demand, causing ripple effects across the industry. Major manufacturers like Longi are forced to downsize their workforce, highlighting the magnitude of the oversupply crisis.
Outlook for Solar Power Installers
Despite challenges in Europe, solar power installers like Sagar Adani in India benefit from abundant and affordable Chinese panels, facilitating large-scale solar farm projects. The declining costs of solar power installation have made it a competitive option globally, surpassing other energy sources.
Experts express skepticism about Europe’s ability to regain its footing in solar panel manufacturing due to China’s competitive advantages. Britain, for instance, acknowledges its reliance on Chinese panels, with plans to significantly expand solar power capacity using imported panels.
Future Prospects for Solar Energy
Despite setbacks, the UK remains committed to expanding its solar power capacity, primarily through large solar farms. The forthcoming UK Solar Roadmap underscores a fourfold expansion of solar energy, aligning with broader goals for renewable energy adoption. As China continues to dominate solar panel production, its influence extends beyond borders, shaping the trajectory of global solar energy markets.
Source：telegraph.co.uk
