Solar power generation unit overcapacity

Is solar power overcapacity a problem?

Previous work has provided evidence that PV cell production capacity in 2012 accounted for 63 percent of the world's total, and the overcapacity rate of wind energy in the same year was more than 50 percent . These studies reinforce the fact that both of these industries continue facing the problem of overcapacity.

What is overcapacity of electricity supply?

Overcapacity of electricity supply can be defined as a situation in which the installed electricity production capacity in a certain geographic region exceeds the demand of that region .

What is the subsidy threshold value for solar energy companies?

The subsidy threshold value for solar energy companies is relatively high and equals 16.8425 (the value of natural logarithm returns is 20.64 million yuan). When the subsidy obtained by solar energy companies is less than 16.8425, its influence coefficient on capacity utilization is −0.1601, namely: subsidy has intensified the overcapacity.

Do subsidies affect the capacity utilization of wind and solar companies?

Obviously, the subsidies have notable contradictory impacts on the capacity utilization for both wind and solar companies, which illustrate the strong correlation between the two variables. Therefore, we investigate further to determine if a threshold value exists for these industries with respect to subsidies granted. Table 4.