A June 19 editorial by Wood Mackenzie argues that a recent decision by the government of China to stop subsidizing utility-scale PV power stations after June 1 of this year will result in a global oversupply of PV modules, of which China is the world’s leading producer. The short-term result is likely to be prices driven downward, and manufacturers elsewhere having to curtail production.
Over the longer term, though, Wood Mackenzie thinks one result could be increased competition, lower prices in competitive auctions and world-record-low tariffs for PV power, and a drive to technological innovation as developers seek to increase efficiency and lower cost.
Original story here.