Solar module prices set to stabilise on China’s 2015 17.8GW install target - EnergyTrend

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

Taiwan-based market research firm EnergyTrend expects PV module pricing to stabilise and production utilisation rates improve after China’s National Energy Administration (NEA) raised the country’s overall PV installation target from 15GW to 17.8GW in 2015. 

Although module ASP declines have moderated significantly in 2014 due to continued growing global demand, overcapacity remains an issue.

According to EnergyTrend, China’s production of PV modules totalled 35GW in 2014, which had the top ten domestic manufacturers account for 56% of total production with capacity utilization rates of close to 90%. 

However, PV module manufacturers in China with less than 500MW of capacity were said to have average production utilization rates as low as 72%.

China’s new 2015 installation target was therefore expected to provide almost immediate relief for manufacturers struggling with anti-dumping duties in the US and Europe that previously had targeted exports in these regions. 

However, EnergyTrend cautions over the longer-term benefits of the raised target as the rapid expansion of PV module manufacturing in China over the last few years has led to products that have varied widely in quality and led to China having some of the lowest module ASPs. 

“The policy’s main beneficiaries will be manufacturers with sound financial health and strong technological advantages,” said Angus Kao, analyst for EnergyTrend, a division of TrendForce. “So the industry will enter its integration stage where only the fittest will survive.” 

Market survey

EnergyTrend said that its current survey of the market and supply chain indicated a high level of inventory overhang in the upstream sector and the reduction of stock is slower than anticipated. 

Module purchasers from Europe and Japan were said to be delaying placing orders and deliveries because of the depreciation of their currencies, thus lowering the number of visible orders. 

The manufacturers in the downstream sector have slowed down their purchases since the start of March, reflecting fewer-than-expected orders at their end of the supply chain.

Most manufacturers were said to be cautious on their assessments for April’s incoming orders, which has led to ASPs along the entire PV supply chain to decline. 
However, Kao expects the stimulus given by NEA’s raised target to kick-start new orders and stabilise ASPS in both the upstream and downstream sectors. 

23 February 2022
Held annually since 2016, the Energy Storage Summit Europe is the place to be for senior stakeholders in the European storage industry. Designed to accelerate deployment of storage, we examine evolving chemistries, business models, project design, revenue stacks and use cases for storage. The 2022 edition will include exclusive content around longer duration solutions, energy strategies for wide-scale deployment of EVs and "EnTech", the event which sits at the intersection of digitisation, decentralisation and decarbonation of the power system. Come to meet TSOs, DSOs, Utilities, Developers, Investors and Lenders and leave with new contacts, partners and a wealth of information.
7 March 2022
Take your chance to join the most powerful platform in the MENA region. Middle East Energy (MEE), Intersolar, and ees, the leading energy exhibitions are joining hands to co-deliver an outstanding renewables and energy storage event at Middle East Energy 2021. Renewables and energy storage at MEE is the largest gathering of solar and renewable energy industry professionals in the Middle East & Africa, offering the most effective trade focused platform to international manufacturers and distributors looking to meet regional buyers.
8 March 2022
As Solar Finance & Investment enters its ninth year, we sit on the cusp of a new power market with solar at its heart. The 2022 edition of the event will build on our years of expertise and relationships to bring investors and lenders together with top developers. Connect with leaders in the field and use exclusive insights to drive investment and development decisions for the future. Meet new and existing project partners at the largest gathering of European solar investors and lenders.
23 March 2022
When it comes to storage, the US market exceeded a gigawatt of advanced energy storage installations (weighted towards lithium ion) at 1.46 GW, more than the previous six years in total! An exponential growth rate could see the market hit 7.5 GW p.a. by 2025. The summit will provide a wealth of content around this vital piece in the US power puzzle, with sessions dedicated to explore how companies are making money from batteries, the latest chemistries and their applications as they apply to different use-cases. We ask how investors can match ESG criteria to batteries and we will bring case studies of successful deployment and project execution onto the stage to examine how you can ensure your own projects are successful.
29 March 2022
Now in its 10th sell-out year, Large Scale Solar returns to Lisbon in 2022. We are excited to gather together face-to-face with the European solar industry as we provide unique and exclusive access to a powerful selection of the market's key stakeholders. Join this elite summit to find out how the market is maturing, which new markets are becoming more exciting, how technology is evolving and who's driving the market forward into the 2020s. Always senior, packed with developers, EPCs, utilities and investors this is the event for companies serious about European solar PV.
7 April 2022
Solarex Istanbul, Turkey’s first and unique exhibition on solar energy, provides a huge opportunity to Turkey on the way to being a solar energy hub. Solarex Istanbul will take place on 7-9 April 2022 for the 14th time. It will be a commercial platform to have the latest technologies and combination of new products from all around the world. It takes place annually at Istanbul Expo Center, Turkey. It is also called the most important platform for manufacturers, suppliers and dealers of the solar industry in Eurasia.

Read Next

January 27, 2022
Italian asset manager Green Arrow Capital (GAC) has signed a framework agreement with Spanish solar company Progressum Energy Developments (PED) to acquire 508MW of ready-to-build solar PV projects in Spain in a deal worth over €400 million (US$446 million).
January 27, 2022
Tesla’s solar installations jumped 68% in 2021 to 345MW despite a slight dip in additions year-on-year during the fourth quarter.
January 27, 2022
Major European solar developers have called on the European Union (EU) to develop a PV supply chain strategy to avoid cost increases and disruption to projects, with the group calling for 20GW of manufacturing capacity by 2030.
PV Tech Premium
January 26, 2022
s solar finds itself deployed in further and more far flung climes, it is also having to operate in increasingly harsher climates. In this article, VDE Renewables assesses how such climates affect PV performance and what must be taken into consideration when formulating O&M strategies.
January 26, 2022
The CEO of US utility NextEra Energy has said that while he thinks it is “more likely than not” that the clean energy piece of the country's Build Back Better (BBB) bill gets acted on this year, the company doesn’t need policy support included in the legislation to achieve its targets.
January 26, 2022
Leading US solar installer Sunrun has upsized its loan facility to US$425 million from US$250 million at “enhanced terms and longer tenor” to reflect the company’s higher valuation and strong performance.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 8, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal
Solar Media Events
April 25, 2022
Berlin, Germany