[VIDEO]: How China Plans To Fix Solar Overcapacity With New Solar Cartel

With its world leading PV sector hit by losses in the past year, China’s Ministry of Industry and Information Technology is focusing on what it can control, to try and nurse the sector back to health. We saw last week how export incentives on solar products were reduced last week in perhaps a signal to deter new entrants and send a signal to try and raise prices for export markets. This time, the focus is on fresh PV investment.

The Ministry has targeted internal firms by hiking the minimum capital ratio for investing in PV manufacturing projects, including silicon wafers and solar cells and modules. The new level is 30 percent, taking all parts of the solar chain to the same level as polysilicon, which was already at 30 percent. What this means is that firms have to stump up more equity capital for these projects, and count less on debt funding.

Watch the video to know more.