China’s solar companies face margin squeeze despite profit jump

Dark patch: Workers installing roof-top solar panels at a housing area in the United States. Prices across the supply chain have plummeted since the beginning of this year, with panel costs hitting a record low, according to analysts. — AP

SHANGHAI: A factory boom in China that’s lowering the cost and boosting demand for solar panels is also squeezing the margins of the companies that make them.

Fears of overcapacity are driving investors from the sector despite soaring profits and record global installations.