China’s power cut: How will it affect the solar PV module industry?

How the current situation can impact the solar industry?

As reported by the Chinese government on Monday 27th September, a power cut hit two main solar PV manufacturer product regions in China, Jiangsu, and Guangdong.

China’s State Grid Corporation said Monday that it would ” go all out to fight the tough battle of power supply”, making every effort to secure residential consumption.

How the current situation can impact the solar industry?

Jiangsu is known as the main region for the production of solar PV modules, meanwhile, Guangdong is producing semi-conductor, PCB used for inverters. Those regions also regroup main solar PV component suppliers such as cells, EVA, Glass, aluminum frame, etc…

1/Leadtime:

Factories are running at only 50% of their production. Combined with the current huge demand for solar PV modules and projects that need to be finished by the end of the year in China, India, Brazil, etc…, many manufacturers will be confronted with a production delay. Even before the Chinese government announcement, some PV modules and inverters manufacturer has a lead time between 45-60 days in the best situation. The situation will remain the same in October and getting worst after China National Holiday.

2/Price:

Solar PV raw material suppliers are also confronted with the same restriction. We expect a shortage of raw material combines with the high market demand, prices tend to increase. Many manufacturers already announce a price increase of 15 to 20% for October reaching a price per watt of 0.28 to 0.29 USD/W. The situation will impact the whole supply chain. China is producing 80-90% of the solar PV raw material. All PV module manufacturers worldwide will be impacted by the situation.

Eco Green Energy will always keep providing competitive lead time to all its distributors and partners worldwide. We will always fight to respect all lead time announce. Satisfied all our Eco Green Energy distributors and partner is our priority, and we will keep providing competitive prices according to our quality standard.

For more information regarding our company or PV module, feel free to contact us or visit our product pages.