Rising Prices of Photovoltaic Components Create Supply Shortages
The photovoltaic industry is currently experiencing a period of supply shortages, prompting dealers to advise customers to secure inventory quickly to ensure timely delivery. Recently, the industry has seen an influx of requests for large quantities of 182mm solar cells, with some companies actively seeking suppliers. The situation has become urgent, as the supply of solar modules is tight and many distributors are running low on stock.
Market Dynamics and Policy Changes
With major policy implementations set for April 30 and May 31, a rush to install solar systems has resulted in increased demand across the supply chain. Distributors have reported limited inventory of large-sized modules, necessitating pre-orders to lock in availability. The urgency is further amplified by risks associated with future pricing and potential factory defaults, leading to predictions that module prices could exceed 0.9 yuan/W.
This year, two significant policies were introduced, including the Management Measures for Distributed Photovoltaic Development and the Notice on Deepening Market-oriented Reform of New Energy Power Prices. These regulations stipulate that projects completed and connected to the grid before April 30 can enjoy full-grid access, while projects connected afterward will have limited options.
Current Pricing Trends
As of March 20, quotes for photovoltaic components have increased, with mainstream prices for N-type 182mm modules ranging from 0.704 to 0.722 yuan/W and N-type 210mm modules between 0.719 and 0.737 yuan/W. The price for Topcon distributed modules is reported at 0.764 to 0.780 yuan/W. The overall production in March has risen by 35% compared to the previous month, indicating a robust order fulfillment trend.
Despite the rising prices, it is essential for customers to prioritize securing existing inventory rather than focusing solely on price differences. An anonymous distributor emphasized that the main concern now is ensuring delivery rather than pricing, as many models are facing delivery delays.
Quality Concerns in a Tight Market
The current shortage has led to quality concerns, with some lower-quality solar cells entering the market. Major companies have issued warnings regarding products from unauthorized channels due to potential safety risks. Additionally, upstream costs are rising across the supply chain, with polysilicon, wafers, and other materials experiencing price increases.
Industry leaders, including Tongwei and Daqo, have announced production adjustments, which are likely to impact the overall market. This reduction in output aims to stabilize prices and ensure better profitability in the long term.
Expert Opinions on Future Trends
Some industry experts have expressed concerns that the current rush might not significantly increase the total installation capacity for the year. The expected demand surge may merely amount to a timing adjustment rather than a genuine increase in capacity. Leaders in the photovoltaic sector are urged to maintain discipline, focusing on sustainable practices rather than short-term gains.
