ReneSola expects significant decline in solar module prices benefiting project developers

Facebook
Twitter
LinkedIn
Reddit
Email
ReneSola said in a statement that the ‘2018 Solar PV Power Generation Notice’ issued by the Chinese government ministries last Friday that it expected a “significant decline in prices for equipment and construction in the second half of 2018,” which benefits downstream developers. Image: ReneSola

China-based solar PV project developer and operator ReneSola is one of the first companies to publically echo the impact expected from the Chinese government’s decision to significantly curtail solar deployment, highlighting the solar module ASP decline of modules as a key benefit to downstream developers. 

ReneSola said in a statement that the ‘2018 Solar PV Power Generation Notice’ issued by the Chinese government ministries last Friday that it expected a “significant decline in prices for equipment and construction in the second half of 2018,” which benefits downstream developers. 

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

ReneSola's Chief Executive Officer Xianshou Li said, “Our existing projects will continue to receive the subsidies to which they are entitled. Our future projects will also benefit from a likely significant decline in prices for equipment and construction in the second half of 2018. Furthermore, commercial/industrial electricity prices are higher in the eastern provinces in which our DG projects are mainly deployed. We believe the lower equipment cost and stable electrical rates will enable us to find unsubsidized net-metered and self-consumption projects at grid parity with reasonable rates of return. We believe net metering and self-consumption projects could experience tremendous growth in the second half of 2018. Distributed generation in China will continue to be an important growth driver for us over the long-term.”

Indeed, the company also expects the module ASP declines to help its business in regards to overseas projects.

“Importantly, China DG is only one driver of our growth. Our China business complements our extensive pipeline of high quality projects around the world. We anticipate significant declines in module prices that will benefit our overseas projects by increasing returns and thus project values. ReneSola has steadily built business momentum since the divestiture of the manufacturing business, and we are confident growth can continue. As a result, we are raising our guidance for Q1 revenue to a range of $40 to $45 million, which is well ahead of the $30 to $35 million we originally expected,” added Li.

However, having spun-out its upstream PV manufacturing operations, significant ASP declines, due to an expected period of overcapacity in China, which could be a serious threat to many manufacturers that have already experienced low gross margins in 2017 and weak financial balance sheets.

21 October 2025
New York, USA
Returning for its 12th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.
10 March 2026
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.

Read Next

July 8, 2025
The Chinese government has moved to curb excessive competition in the PV sector and stabilise pricing as companies report growing losses.
July 8, 2025
Bulgarian-headquartered solar engineering company Sunotec has acquired 100% of the project company, SIA DSE Lazas Solar, from Danish Sun Energy. 
July 8, 2025
SJVN Green Energy has commenced commercial operations of 100.02MW from its 1,000MW solar power project in Bikaner, Rajasthan.
Premium
July 8, 2025
In the latest NEM data spotlight, solar generation in Australia reached its yearly lowest month, while rooftop solar prices spiked to AU$225.57/MWh.
July 7, 2025
Chinese energy giant China Petroleum and Chemical Corporation, also known as Sinopec, has commenced operations at a 7.5MW offshore floating PV plant in China.
July 4, 2025
Chinese PV provider Skycorp Solar Group has announced a solar plant acquisition and development strategy following unanimous board approval.

Subscribe to Newsletter

Upcoming Events

Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 22, 2025
Bilbao, Spain
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK