Nothing spoils a great thing quicker than subsidies When one starts to intervene into market forces, those forces will come back and bite you. My father always told me: “If you can’t change it, embrace it.” All those showering renewables with subsidies today will eventually run out of other peoples money. And when that happens, when the balance won’t straighten out anymore, then things change in ways that those giving the subsidies certainly don’t want. There is no messing around with market forces.
China’s suspension of approval for new subsidised grid-scale photovoltaic (PV) solar projects has led to sharply reduced forecasts for global capacity expansion in 2018. But the longer-term outlook for the sector still looks buoyant, as costs continue to fall.