LONGi urges Chinese government to crack down on unreasonably low module prices

Facebook
Twitter
LinkedIn
Reddit
Email
LONGi headquarters
LONGi’s chairman Zhong Baoshen calls on the Chinese government to introduce new regulations for a sustainable renewables industry. Image: LONGi Green Energy

Major Chinese solar manufacturer LONGi has called on the Chinese government to introduce new bidding rules to crack down on low prices and ensure the sustainable development of the renewables industry in China.

In an interview with Shanghai Securities News, LONGi’s chairman, Zhong Baoshen, said prices were often the sole criteria in the bidding process for solar PV components. To win the bid, some solar PV manufacturers offered a price much lower than the cost of solar PV components.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

After winning the bid, these manufacturers lowered the costs of procuring materials and production to compensate for the losses, resulting in lowered product quality. Therefore, these manufacturers could not guarantee the safety, reliability, and efficient power generation performance of the solar PV components throughout their lifecycle, risking downstream solar PV power plants.

Zhong described the phenomenon of bidding prices lower than the costs of solar PV components as “unsustainable”.

“Unscrupulous solar manufacturers use low prices to get orders first. If they fail to deliver the products, they should be replaced by another company. However, in reality, these solar manufacturers will negotiate with buyers as it is very difficult for the buyers to admit that a wrong decision was made in the last tender,” Zhong said.

“As a result, responsible solar manufacturers cannot win the bids. Big companies are very distressed about this issue.”

Zhong suggested that the solar manufacturing industry in China should introduce a new bidding method. For example, buyers can use the average prices of the bids as criteria and eliminate the highest and lowest prices, which could encourage solar manufacturers not to submit bids with unreasonably low prices.

The Chinese government should also introduce regulations to ban submitting bids with prices lower than costs, while designated authoritative industry associations should also issue guidelines on a regular basis.

Moreover, Zhong further suggested that buyers of solar PV components should consider non-price factors in the bids, such as technological innovation, quality and reliability of solar PV products, as well as business competence.

Last year, PV Tech talked to Zhong about back-contact (BC) cells produced by LONGi based on n-type technology. In the interview, Zhong announced plans to invest RMB3.92 billion (US$536 million) in production.

Furthermore, in a recent blog post for PV Tech, Finlay Colville, head of research at Solar Media, wrote about the possible downturn the PV manufacturing industry will face in 2024, with module prices low due to an over-production and over-supply of modules to Europe and the US.

13 October 2026
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 13-14 October 2026 is our fourth PV CellTech conference dedicated to solar manufacturing in the USA. From polysilicon, wafers, ingots, cells and modules, to critical component suppliers including glass and frames, the event connects every stage of the value chain under one roof. PV CellTech USA also brings together investors, innovators, manufacturers and industry stakeholders to collaborate and strengthen domestic solar manufacturing across the United States.
3 November 2026
Málaga, Spain
Understanding technology and supplier selection for Europe’s utility-scale PV market in 2027. PV ModuleTech Europe 2026 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of PV module, inverter and battery supplier selection; product availability, technology offerings, supply chain traceability, quality assurance, factory auditing, system reliability, and supplier bankability.

Read Next

July 29, 2026
ADB has approved an US$850 million loan to support the second phase of reforms for India's flagship residential rooftop solar programme.
July 29, 2026
The Federal Communications Commission’s (FCC) Public Safety and Homeland Security Bureau (PSHSB) has added foreign-produced power inverters and “advanced robotic devices” as a national security threat.
July 29, 2026
Enphase Energy reported revenue of US$291.9 million for the second quarter, up 3.2% in the first quarter of 2026.
July 29, 2026
OCI Holdings has announced plans to double its annual solar-grade polysilicon production to 70,000MT by 2029.
Premium
July 28, 2026
INOX’s Devansh Jain talks the company’s shift from acquisition-led growth towards integrating its expanded clean energy platform.
July 28, 2026
US solar PV manufacturer T1 Energy has bought a set of patents for tunnel oxide passivated contact (TOPCon) solar cell and module technology which it said will “differentiate” its position in the US market.

Upcoming Events

Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
April 20, 2027
Istanbul, Türkiye