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China's Solar Bailout Won't Counter Global Glut: Credit Suisse

  • Reported increase in domestic demand won’t halt price plunge
  • Credit Suisse sees little impact on manufacturer gross margins
Photovoltaic panels stand at a solar farm on the outskirts of Jiaxing, Zhejiang province, China.

Photovoltaic panels stand at a solar farm on the outskirts of Jiaxing, Zhejiang province, China.

Photographer: Qilai Shen/Bloomberg
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China’s proposal to increase its solar energy target to as much as 270 gigawatts by 2020 won’t be enough to erase the worldwide panel glut that’s crippling prices, according to analysts at Credit Suisse Group AG.

“We forecast that the country needs a 300-350GW by 2020 target to fully absorb new manufacturing capacity planned in the near term,” analysts Michael Weinstein and Maheep Mandloi said in a research note Monday night. “Given the size of the glut, we see limited impact on international module prices.”