Chinese solar firms urge govt. to curb price freefall

Chinese solar panel manufacturers are urgently seeking government intervention to curb investments and to increase industry collaboration in order to halt a drastic fall in solar cell and module prices due to overcapacity.

China, which accounts for 80 per cent of global solar module capacity, is set to add up to 600 GW this year, enough to meet global demand until 2032. Rapid capacity increases caused a 42 per cent price drop in China’s solar panels last year, threatening smaller firms with bankruptcy. Industry leaders, including Seraphim Energy Group’s Chairman Li Gang and Trina Solar’s CEO Gao Jifan, highlighted the need for regulation and cooperation to prevent further losses.

At the International Solar Photovoltaic and Smart Energy Conference, Gao and others called for an end to aggressive price competition and better investment management, warning that profits had plummeted by 70 per cent and the situation could force more small companies out of business.

From June 2023 to February 2024, eight firms cancelled or suspended 59 GW of new production, 6.9 per cent of China’s 2023 capacity. Industry executives foresee worsening conditions and increased bankruptcies this year.