Move may lead to drop in global installations

Beijing's new policy to eliminate subsidies for most of its solar projects might lead to a drop in global solar installations and introduce short-term disruption for industry participants globally, analysts believe.

James Evans, an industry analyst at Bloomberg Intelligence, said the halting of installation quotas in 2018 for ground-mounted solar energy projects in China and limiting distributed solar activity to 10 gigawatts are set to have major industry implications, given the country had 54 percent of global installation in 2017.

The measures will curb demand while adding margin pressure, encourage industry consolidation and drive aggressive export activity, he said.