AFTER nearly $48 billion of subsidies spent by the Chinese state to dominate the global market in solar power - many small businesses in the sector are continuing to go bankrupt, or consolidating with others – with business experts predicting there will only be 10 to 12 companies left once the industry finally re-emerges.

China’s backing for the solar industry has created massive manufacturing giants that made them dependent on local state aid. But as the price of PV products recovers, many are now crippled with debts and over capacity, with profit sheets looking at zero for the foreseeable future. 

A Chinese solar power expert, said: “Our industry is looking anorexic and not in very good shape at the moment. Exports to the global economy accounts for seven out of every 10 solar panels produced worldwide together with eight of the 10 panel makers.”

A spokesman at the Chinese government, added: “We are looking to consolidate the sector and supporting businesses through loans is not the answer.”

Meanwhile, China and Japan look set to overtake Germany and Italy as the world’s biggest market for solar panels. The Chinese government estimates the country will spend nearly $294 billion on renewable energy in the five years to 2015.

Source: Bloomberg 
Pvcompare team