The Financial Times describes how cheap Chinese solar panels are rapidly transforming electricity systems around the world. Solar capacity has reached nearly 1.2 terawatts globally, helping businesses and households in countries such as Pakistan, India, Africa, and the Philippines cut electricity costs and gain more reliable power.
However, the rapid growth of rooftop solar is also creating challenges for traditional utilities. As customers generate more of their own electricity, utilities can lose revenue while still having to maintain the grid and provide power when solar production falls. Countries such as South Africa, Australia, and Pakistan are already dealing with these pressures.
The expansion is also making electricity grids more difficult to manage because solar generation changes with weather and can create periods of excess or insufficient power. Batteries, better forecasting, and AI-based grid management could help. The overall trend appears difficult to reverse, but governments and utilities will need to redesign pricing, grids, and energy storage systems to adapt.
