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

March 5, 2024
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.

Read Next

December 3, 2025
Buyers should prepare for increases in the price of vital solar module components, such as polysilicon, wafers and cells, but “remain cautious” of accepting new contractual terms from Chinese suppliers until formal market policies are agreed.
December 3, 2025
The US Department of Energy (DOE) has renamed the National Renewable Energy Laboratory (NREL) the National Laboratory of the Rockies.
December 3, 2025
The Australian Renewable Energy Agency (ARENA) has announced up to AU$151 million (US$98 million) in conditional funding for Sunman Energy to establish a 500MW per annum solar module manufacturing facility in the Hunter Valley, New South Wales (NSW).
December 2, 2025
Astronergy and JA Solar have 'reached an agreement on cross-licencing' of tunnel oxide passivated contact (TOPCon) patents moving forward.
December 2, 2025
Australia's NEM faces a fundamental transformation as solar PV generation and BESS drive the transition to a low-emissions energy system.
December 1, 2025
Victoria's first state-owned solar-plus-storage project has reached a major construction milestone, with the installation of all 212,296 PV modules at the SEC Renewable Energy Park in Horsham, Australia.

Upcoming Events

Upcoming Webinars
December 4, 2025
2pm GMT / 3pm CET
Upcoming Webinars
December 17, 2025
2pm GMT / 3pm CET
Solar Media Events
February 3, 2026
London, UK
Solar Media Events
March 24, 2026
Dallas, Texas
Solar Media Events
April 15, 2026
Milan, Italy