New Energy

Solar Factories Slow Output as Overcapacity Weighs on Profits

  • Some wafer factories operating at as low as 40% of capacity
  • Prices for the thin squares have fallen 75% since August 2022
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China’s solar factories are tapping the brakes as the industry struggles with a price war and overcapacity that could force many into bankruptcy.

Some wafer factories are already operating at as little as 40% of their capacity with more production cutbacks expected in February, the China Silicon Industry Association said in a Thursday statement. Prices for the thin squares that get wired into cells and then assembled into panels have fallen 75% since August 2022, according to BloombergNEF.