China-based makers are setting up additional production capacities for solar cells in China and overseas, but the China government has not yet set the target for PV installation capacity for second-half 2016. The capacity expansion and uncertainty about demand in China have raised concerns about global solar cell and module oversupply in second-half 2016, according to industry sources.
Additional capacities being installed by China-based makers are estimated at a total of 15GWp and a large portion will come into operation in second-half 2016, the sources said.
The China market is expected to absorb most of the additional capacity, the sources indicated. China recorded total PV installation of 7GWp in first-quarter 2016 and may reach 14-15GWp in first-half 2016, the sources noted.