China’s solar panels makers to receive tax breaks

This despite massive overcapacity and weak demand.

China has begun offering tax breaks to manufacturers of solar power products. The Ministry of Finance said that producers of solar power products will receive immediate refunds of 50% of value-added taxes.

China's official media said the bloated photovoltaic industry still faces a grim outlook as many companies are deeply mired in debt. It cited data from the China Renewable Energy Society saying that China’s top 10 solar panel makers are US$16.3 billion in debt, with a debt to asset ratio above 70% on average.