PARIA, 15 Jan. - (ANA) - Solar panels are far more affordable today than they were a generation ago. Falling prices have expanded access to renewable energy for households, businesses and utilities, supporting emissions reductions worldwide. 

 

But what happens when subsidies that lower prices also drive overcapacity and concentration? A new policy brief explores how these dynamics are shaping solar manufacturing and what they could mean for global markets.

 

The production of solar panels was the most subsidised industrial sector over the period 2005-24, which saw the People’s Republic of China becoming dominant across the entire solar value chain. The scale of subsidisation in China’s solar sector has contributed to continued investment in production capacity regardless of market conditions and to the concentration of manufacturing activities in China. 

 

Despite the high levels of subsidies they have received over the last two decades, Chinese manufacturers of solar panels have experienced severe economic difficulties in recent years. In 2024, the sector witnessed significant price declines, leading to falling revenue and profitability and significant job losses. 

 

While some OECD Members have recently adopted new policy measures aiming to spur investment in domestic solar manufacturing capacity, it remains unclear whether these will be enough to reverse China’s market dominance.

 

To download the report, visit: https://www.oecd.org/content/dam/oecd/en/publications/reports/2026/01/subsidies-and-the-solar-panel-industry_7bbfef7a/68481900-en.pdf  - (ANA) - 

 

AB/ANA/15 January 2026 - - -