The global photovoltaic (PV) market is facing a crisis of oversupply, plunging prices, and mounting losses across the entire supply chain, from polysilicon to modules.
Due to the subsidy policies of many governments, the overcapacity of the PV system production and the oversupply of the C-Pi modules are seen commonly in the PV global supply chain network. This trend also leads to the dumping accusation and anti-dumping trade battles between PV system importing and exporting countries.
Oversupply has been central to the solar supply chain since the second quarter of 2023 but there are signs the trend is shifting. In 2024, the supply chain has experienced a slowdown. Rationalisation efforts in China aim to control the expansion of companies and increase industry barriers to entry.
Is solar power a 'drought'?
Solar power is an important clean energy source that supports ambitious global carbon-neutrality goals. Yet, its supply is well known to be affected by weather fluctuations (Gernaat et al., 2021; Jerez et al., 2015; Poddar et al., 2021; Sawadogo et al., 2021), leading to the concerns of solar “droughts”.
What are the global trends in the curtailment of solar PV?
Global trends in the curtailment of solar PV Solar photovoltaic (PV) systems generate electricity with no marginal costs or emissions. As a result, PV output is almost always prioritized over other fuel sources and delivered to the electric grid. However, PV curtailment is increasing as PV composes greater shares of grid capacity.
Why is PV output unused?
As a result of its zero marginal cost characteristics, PV output is almost always prioritized in electricity grid dispatches and delivered to the grid. However, as PV composes increasing shares of grid capacity, it will become increasingly common that some available PV output will be unused for technical or economic reasons.
Are large-scale photovoltaic energy programs sustainable?
In the context of the global climate change, many large-scale photovoltaic (PV) energy programs have been launched and developed in the world without a thorough sustainable thinking.