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.

16 June 2026
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 16-17 June 2026, will be our fifth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2028 and beyond.
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 PV module supply to the European 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 module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.

Read Next

Premium
May 22, 2026
As trade dynamics shift, could the EU become the next big market for Indian solar suppliers? PV Tech Premium explores the outlook with Wood Mackenzie’s Yana Hryshko and IEEFA’s Charith Konda.
Premium
May 22, 2026
PV Talk: Frank Oudheusden explains how robotics could create a paradigm shift and improvements in PV system optimisation for extreme weather.
May 22, 2026
The planned merger of US utilities NextEra Energy and Dominion Energy should be met with “caution” by state lawmakers, according to a number of US clean energy and political non-profit groups.
May 22, 2026
Polar Racking has launched a Solar Asset Management Division to support operations and maintenance (O&M) activities across utility-scale and commercial solar projects in North America and the Caribbean. 
May 22, 2026
The world is entering an ‘electricity-led era’, with solar PV set to become the globe’s largest electricity generation technology by 2032, according to Bloomberg New Energy Finance (BloombergNEF).
May 21, 2026
Indian renewable energy company SAEL has commissioned 600MW of solar project in Kurnool, Andhra Pradesh. 

Upcoming Events

Upcoming Webinars
May 27, 2026
9am BST / 10am CEST
Upcoming Webinars
May 27, 2026
9am BST / 10am CEST
Media Partners, Solar Media Events
June 2, 2026
Johannesburg, South Africa
Media Partners, Solar Media Events
June 3, 2026
National Exhibition and Convention Center (Shanghai)
Solar Media Events
June 16, 2026
Napa, USA