China’s solar power component manufacturers raised output in the first six months of the year despite dwindling market opportunities caused by a government decision to curb new capacity, an industry association said on Thursday. China’s solar sector has been growing rapidly after local governments commissioned hundreds of new projects to meet the country’s aggressive renewable energy targets. But the state planning agency said in June that it would cut subsidies for new projects and cap capacity additions at 30 gigawatts (GW) for this year, down from a record 53 GW in 2017, as it tried to “optimize” the pace of construction amid overcapacity fears.  Despite the policy adjustments, manufacturers continued to ramp up production in the first half of 2018, even though total installed generation capacity remained unchanged compared to the same period of last year, China Photovoltaic Industry Association (CPIA) Vice-Chairman Wang Bohua said.

“The solar power sector should strengthen self-discipline whether domestically or overseas, and it should refrain from false propaganda and from price-gouging cut-throat competition,” Wang told an industry conference.  He said the production of silicon wafers – a key solar component – rose 39 percent year-on-year to 50 GW in the first half, with solar module output rising to 39 GW, up 22 percent.  Total installed solar generation capacity stood at around 24 GW in the first six months, Wang said, roughly the same as last year. Half of the new capacity consisted of “distributed” projects on rooftops and other installations.