Solar manufacturing majors contact customers to delay projects among supply 'crisis'.

Oct 1, 2021 12:51 PM ET
  • Five of the solar market's leading module manufacturers have actually released a joint statement caution of an approaching "crisis" regarding module supplies, urging developers to consider postponing projects and requiring higher cooperation in between upstream and also downstream gamers.
Solar manufacturing majors contact customers to delay projects among supply 'crisis'.
Image: Trina Solar

In an open letter seen by PV Tech, LONGi Green Energy, JinkoSolar, Trina Solar, JA Solar and also Risen Energy have actually alerted that owing to soaring materials and also logistics costs, lots of signed orders will certainly cause "major losses" as well as "seriously threaten the ... sustainable advancement of the market".

The rate of polysilicon has been a close to consistent thorn in the side of solar battery and also module producers this year, as well as this week costs jumped up by a further 9% after the Chinese government bought silicon metal refineries to shutter in the middle of a strengthening power crisis in the country.

Today's letter additionally referrals an 18.2% jump in solar glass prices and a 35% increase in the expense of glue films year-on-year felt last year, while the expense of modules have just risen by a comparatively modest 9% over the course of 2021.

Consequently, the module majors have actually alerted that the growth of the industry is now at crisis point, as well as have jointly called for 4 remedies they consider essential to the future wellness of the sector.

While the business have actually worried they are collectively coordinating resources in order to stabilise supply, they have actually hired relevant state divisions in China and also past to help stem a rush of setups anticipated for Q4, the quarter when China historically sets up the most solar because of release cut-off due dates.

In addition, the suppliers have actually begged clients to delay projects if possible, with ability exercise rates presently dropping below 70% across the board.

The five have actually also contacted pertinent PV sector associations as well as various other bodies to a lot more closely keep an eye on upstream and downstream manufacturing ability to assist planning manufacturing capacities ahead of time as well as strike even more of a balance between upstream and downstream supply as well as need.

The letter has additionally worried the need for all parties associated with the manufacture of photovoltaic panels to collaborate more carefully.

Solar Installers, Manufacturers