China has flooded the market with solar panels, and people are using them as garden fences.
Chinese manufacturers have saturated the market with solar panels to such an extent that their surplus has caused a global price drop. Solar panels, 80% of which are produced in China, are now so cheap that they are being used to clad garden fences in Germany and the Netherlands, reports the Financial Times.
Usually, solar panels are installed on roofs to capture the maximum amount of sunlight, but due to an oversupply, some people have started installing them on fences. This also helps save on the expensive labor and scaffolding needed for roof installation, FT reported.
Fences covered with solar panels are also starting to appear in the UK, North America, and Australia. "Why put up a fence when you can install a bunch of solar panels, even if they aren't perfectly aligned with the sun?" said Martin Braf, head of climate research at BNP Paribas Exane, FT.
According to the International Energy Agency, the supply of solar panels worldwide is expected to reach 1,100 gigawatts by the end of this year, which is three times the demand. Prices in the market have already halved in 2023 and, as the agency noted, are likely to continue to decrease by another 40% by 2028.
The surplus of Chinese solar panels in the market is in the spotlight of U.S.
"During her meetings in China, Secretary Yellen will advocate for American workers and businesses to ensure they are treated fairly, including pressing Chinese partners on unfair trade practices and highlighting the global economic consequences of China's industrial overcapacity," the press release from the Treasury Department announcing Yellen's visit states.
Yellen stated last week at the Suniva solar panel manufacturing plant in Georgia that she is "concerned about the global implications of the excess capacity we are seeing in China," which is now affecting new industries such as solar energy, electric vehicles, and lithium-ion batteries.
Beijing is prioritizing the sectors it refers to as the "new three" industries to support its economy. China is facing challenges in transitioning away from its dependence on real estate, which is currently in a debt crisis.
Chinese manufacturers are also feeling the pressure from the surplus of solar panels. Last month, Longi Green Energy Technology, the world's largest solar panel manufacturer, announced layoffs of thousands of workers due to excess capacity and low prices.
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