China to limit construction of new solar panel factories

China, the world's biggest maker of solar panels, will limit construction of new photovoltaic manufacturing plants to curb excess capacity in a move that may encourage consolidation within the industry.

New solar plants that "purely" expand capacity will be strictly banned, the Ministry of Industry and Information Technology said in a statement on its website yesterday.

Annual spending by companies for research and development and upgrading equipment must total at least 3 per cent of revenue and must exceed 10 million yuan (HK$12.6 million).

Chinese authorities have pledged to cut overcapacity in industries from steel to paper as policy makers seek to reduce the economy's reliance on investments and exports.

A global oversupply of solar panels led to a 20 per cent plunge in prices last year, according to data.

The policy will slow efforts to expand production capacity in favour of mergers and acquisitions as a growth strategy for the biggest companies, said Angelo Zino, an analyst with S&P Capital IQ in New York.

Comments (0)

This post does not have any comments. Be the first to leave a comment below.


Post A Comment

You must be logged in before you can post a comment. Login now.

Featured Product

US Battery - Solar RE L16XC Renewable Energy Battery

US Battery - Solar RE L16XC Renewable Energy Battery

Our batteries have Xtreme thick plates with (XC Diamond Plate Technology) added to them. They have been designed for hours of heavy discharge each day, followed by a fast recharge during the daylight hours. Very few batteries can take the grueling deep discharge-recharge cycle every day for long periods of time. U.S. Battery has proven time and time again that our solar battery line can stand up to this type of battery torture day in and day out for years to come. When you demand reliable energy storage count on U.S. Battery every time!