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China photovoltaic panel makers look for government action to halt freefall in prices

Chinese photovoltaic panel manufacturers stated they are seeking instant federal government intervention to curb investment and industry cooperation to apprehend a plunge in prices of solar cells and modules, as the market faces overcapacity.

Financial rewards and a federal government push have assisted China end up being the solar panel factory of the world, accounting for about 80% of worldwide module capability. Experts expect Chinese makers to add up to 600 gigawatts (GW) this year, enough to satisfy global need through 2032.

Nevertheless, without any end in sight for the plunge in prices, industry officials and analysts said extreme competition was threatening to drive smaller sized manufacturers into bankruptcy. Fast capacity additions drove down prices of China's ended up solar panels by 42% in 2015.

Make it through - that's the goal, Li Gang, chairman of Seraphim Energy Group said at the International Solar Photovoltaic and Smart Energy conference on Tuesday.

In between June 2023 and February 2024, at least eight business cancelled or suspended more than 59 GW of new production capacity, comparable to 6.9% of China's total completed panel production capability in 2023, according to the China Photovoltaic Market Association (CPIA).

We require to join our forces together to prevent overinvestment, Gao Jifan, chairman and CEO of Trina Solar and honorary president of CPIA informed the conference.

Gao looked for federal government guideline of brand-new financial investment in the sector to plug more losses, while SiNeng Electric's president Duan Yuhe asked the Chinese state organizer to intervene.

Gongshan Zhu, chair of the Asian Photovoltaic Market Association, warned brand-new business versus hurrying into the sector, stating market profits had actually plunged 70% due to overcapacity and falling prices, while exports were curbed by trade barriers imposed by the United States.

If you're simply a copycat, it will not be sustainable for you, Zhu said, adding that the circumstance has actually been exacerbated by local governments investing for the sake of enhancing employment.

Industry executives speaking at the conference also called for an end to race-to-the-bottom price competitors, and suggested bidding processes take into consideration levels of research study and development, instead of just rates.

Some company officials, such as Wuxi Suntech Power Chairman Fei Wu, stated combination had actually currently begun. The market's. prospects were expected to aggravate this year and more small. companies were most likely to go out of business, he included.

(source: Reuters)