GreenergyDaily

Apr. 17, 2026

China's solar manufacturers say any demand boost from the Iran war is unlikely to ease the industry's severe overcapacity.

"Prices might go up slightly, or global demand might increase a little bit, but it won't seriously impact the overall supply-demand dynamics," a solar industry executive interviewed by Reuters said.

"Some companies will make it and some won't," the executive said. "The problem is that the capacity is still there. It hasn't been shut down, cleared out or truly exited the market."

"Overcapacity is very serious and won't be cleared in the short term," said a sales manager at a major solar manufacturer in China. "The industry is under extreme pressure."

Two other China-based solar executives said ‌they had ⁠not noticed any increase in demand since the Iran war started.

One reason, they said, is that buyers had front loaded orders before Beijing's long-flagged removal of export tax rebates for the industry on April 1.