Major Chinese module manufacturers require federal government treatment over 'out of hand' glass prices

Nov 3, 2020 03:16 PM ET
  • Major module manufacturers in China have contacted the nation's federal government to step in as well as relieve solar-grade glass scarcities they have actually stated are "unmanageable".
Major Chinese module manufacturers require federal government treatment over 'out of hand' glass prices
Image: Frounhofer

In a joint declaration provided today, Canadian Solar, Risen Energy, JA Solar, JinkoSolar, LONGi as well as Trina Solar, along with others, have actually issued a list of possible remedies for the Communist Party of China to consider as it assembles its 14th Five-Year Plan, due to be unveiled early next year.

The calls come after the industry has actually experienced the average selling price (ASP) of solar-grade 3.2 mm glass more than double given that July, triggered by a "severe lack" which has actually "critically impacted" production and shipment of solar PV modules in recent months, the business claimed.

The statement argues that adhering to a stormy begin to the year, with the COVID-19 pandemic impacting the whole solar worth chain, demand for modules has exploded, and also China alone is anticipated to mount as long as 29GW in the second fifty percent of 2020, driven at least partly by grid connection target dates.

Demand for modules has placed greater strain on the market's supply chain, and also glass specifically remains in high demand.

" [The] PV industry has ended up being China's calling card, and the scarcity of glass has actually made it hard for numerous overseas orders to be provided, and this weakens not just the reputation of business, but even the nation itself," the declaration reads.

The six majors to have actually co-signed the letter have mentioned they are now teaming up as well as coordinating sources in order to assure supply of glass, but has hired pertinent state divisions in China to step in with glass manufacturing capability having been "seriously left" as module manufacturers have actually struck the accelerator on ability development strategies.

"The overall supply of modules is insufficient, as well as PV module companies have actually already experienced large-scale delivery hold-ups," the firms have actually stated.

The majority of the solutions are targeted at relaxing penalties as well as other losses associated with utility-scale projects missing out on grid link deadlines as a result of module supply shortages. The firms have advised state divisions to consider presenting policies to "cool off the thrill for setup" towards the year's end, as well as overview the development of jobs impacted by supply chain restrictions.

The statement also requires upstream glass makers to "take the effort and work together" with downstream module companies to ensure supply, while it additionally urges that policy-making departments in China to take into consideration the "urgent situation" dealing with solar advancement as well as to loosen any kind of restrictions on glass manufacturing capacity expansions that might be influenced by actions within China's upcoming Five-Year Plan.

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