Price Increases in Photovoltaic Modules Signal a Supply Shortage
As prices for photovoltaic modules rise, the industry is entering a phase of supply shortages. Dealers are advising customers to secure immediate orders to ensure delivery. Recently, demand for 182-size solar cells has surged, with manufacturers struggling to meet the needs of the market. A representative from a photovoltaic factory in Chuzhou has been actively seeking suppliers for these cells, highlighting the tight supply situation.
With new photovoltaic policies set to be implemented on April 30 and May 31, a rush to secure installations has emerged, causing supply chain tensions. Many downstream distributors are left with minimal inventory, especially for larger modules, which have mostly sold out. The prevailing advice is to prioritize securing immediate stock rather than worrying about minor price differences.
In January, two significant policies for distributed photovoltaic development were introduced: the Management Measures for the Development and Construction of Distributed Photovoltaic Power Generation and the Notice on Deepening the Market-oriented Reform of the Feed-in Tariff for Renewable Energy. These regulations impact the profitability of solar projects, allowing those connected to the grid by April 30 to sell power at full rates, while projects connected afterward will be limited to self-consumption or partial sales.
According to recent reports, the market price for N-type 182mm modules has risen to between 0.704 and 0.722 yuan per watt, while N-type 210mm modules are priced between 0.719 and 0.737 yuan per watt. Topcon distributed module prices range from 0.764 to 0.780 yuan per watt
Production levels in March saw a 35% month-over-month increase, with more orders being fulfilled. However, the majority of manufacturers are currently focused on reducing inventory. According to the consulting firm InfoLink, the upcoming policy changes are driving a significant uptick in orders, particularly in the distributed market.
As of March 20, reports indicate that module prices have reached as high as 0.8 yuan per watt. Representatives from Trina Solar noted a price increase of 0.05 to 0.06 yuan per watt for distributed photovoltaic systems in some regions, although they did not disclose specific locations. Longi Green Energy mentioned that most companies are now pricing modules above 0.85 yuan per watt.
With the new policies prompting urgency in ordering, module prices are expected to continue rising, potentially surpassing 0.9 yuan per watt. Dealers emphasize that securing immediate stock is now more important than price fluctuations, as timely delivery has become the primary concern.
Concerns have also arisen about the quality of products entering the market due to the supply shortage, with some lower-quality cells from smaller manufacturers being reported. Major companies like Aiko and Trina Solar have issued warnings about potential safety risks from unauthorized products.
Additionally, upstream costs are rising across the supply chain, affecting materials like silicon, wafers, and glass. Leading companies have announced production cuts in response to these price increases, with Tongwei and Daqo New Energy implementing adjustments that will impact their overall production and profitability.
Experts believe that the current rush for installations may not significantly affect the total annual installation volume, as some industry insiders suggest that this surge may merely shift demand rather than increase it overall. The recent price increases are seen as a simple correction in response to supply-demand imbalances.
As the industry navigates these challenges, maintaining discipline among leading companies will be crucial to avoiding further price wars and ensuring sustainable growth.
