China Moves to Rein In Solar Price War as Oversupply Batters Industry

Chinese regulators are moving to stabilize the country’s battered solar sector, rolling out a series of policies aimed at curbing a bruising price war and pushing inefficient producers out of the market.

The coordinated measures — including tighter energy-consumption limits and unified cost-accounting standards — are intended to give regulators a technical basis for policing below-cost sales. The shift signals a change in official priorities, from expanding capacity to imposing market discipline in an industry where chronic oversupply has driven polysilicon prices below average production costs and weighed on domestic solar shares.