Solar Price War May Help Spur China's Renewable Energy Push

• Longi, TCL Zhonghuan reduced wafer prices greater than 20% last week
• Decrease in expenses to make 2023 a large year for solar demand: TCL

Solar tools manufacturers are in a tough competition to reduce wafer prices, giving some relief for China's efforts to set up a huge amount of renewable power as well as get to enthusiastic climate targets.

Dropping solar product prices have driven down costs along the supply chain in current weeks, with silicon wafers seeing the largest price cut. Leading player Longi Green Energy Technology Co. lowered its wafer prices by as long as 27% last week, while peer TCL Zhonghuan Renewable resource Technology Co. reduced its quote by as long as 25%.

The "circuit breaker-style" price plunge is fundamentally because of the falling price of crucial product polysilicon, according to a statement by China Silicon Industry Association. Solar wafer producers have reduced operating prices due to weak prices and also extreme supply, with some at 60% to 70% of complete capacity, it said.

The wafer price battle is likely squeezing all producers' profits, according to a research study note by Daiwa Capital Markets on Wednesday. A decision by Longi to make its wafers slightly thinner was likely required to minimize manufacturing prices, the note said.

Longi really did not instantly reply to an ask for comment.

The fad must supercharge China's aggressive push for renewable energy. Polysilicion costs rose to the highest degree in a years previously this year amidst rising demand as well as manufacturing problems. That increased panel prices, endangering to delay renewable projects as well as attracting government scrutiny.

The dramatic fall in costs throughout the supply chain must make 2023 a huge year for solar market demand, according to a video clip released by TCL Zhonghuan.

Despite higher prices and also supply chain interruptions, China saw a stellar year of solar installations in 2022. A record 65.7 gigawatts of capacity were included the first 11 months, as well as the industry gets on its means to mount 85 to 100 gigawatts for the full year, according to an industry forecast.