Chinese solar panel prices ticked up, hinting that Beijing’s efforts to turn around a damaging domestic price war are having an effect, helped by an Iran-war-driven spike in demand.

Module prices hit just 9¢/watt in December, a staggering fall from $2/watt in 2010, but are now rising. Chinese manufacturers account for 80% of global production, and — spurred by subsidies and competition — have raced to lower prices, leading to huge losses; Western governments have complained that Beijing has encouraged overcapacity, while Chinese authorities have warned of involution. In part, the rising price is driven by government efforts to cut tax breaks and encourage consolidation, but the closure of the Strait of Hormuz has also driven up demand for renewables.