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Panic Solar Installation onging in China, Demand of Solar Module Extremely Exceeds Supply

Release:2017/06/01 Company News

YingRongFang who is vice-president of Trina solar said that he has been working many days continuously without off duty. 

During recent period, he receives dozens of customers each day. Customers have the same target that they want to purchase more solar modules.  Although factory is overloaded, orders still can’t be delivered timely.

YingRongFang said to reporter of ShangHai Securities News,”Customers would call to ask in the past, but now they directly come here to urge. Some customers only want to feel the certainty by meeting sales leader; some customers feel urgent, because if they can’t take solar modules, their projects will be suspended; Some customers just want to keep more solar modules in hand because they are witnessing so hot market.”

This phenomena not just appears in Trina, reporter investigated many leading solar companies and came to know the deadline 30th,June (so-said “6.30” in solar industry) is arond the corner,this deadline is government’s policy for on-grid subsidy. Panic Installation is ongoing, factories are over-loaded, demand of solar module extremely exceeds supply.


Hot Demand comes suddenly
Many cars gathered in front of Trina factory gate,which located in ChangZhou City,China on 17th, May,2017.  After entering into factory, an assembly workshop for solar module appears, reporter saw every assembly line is very busy for welding,laminating, framing, testing and packing. Rumble of machines rises everywhere in the workshop, trasfer arms moving and waving frequently. At some semi-automation process,such as layer-up and junction box connection, workers are processing as fast as machine.

The workshop can output 5600pcs solar modules each day by full load.
YingRongFang told to reporter,” ‘6.30’ of this year is severer than last year, the contradiction of demand and supply is more sharp”. As many projects of this year are target of August,last year, time is short for preparing production. Furthermore,solar module factories were not willing to keep materials stock because of high cost caused by price increase for silicon material. Hence,large-scale shipment still not happened during April in this year.

However, from the bottom of April to start of May, solar market became hot suddenly, ” Since government’s policy obviously indicates that solar projects must be completed before ‘6.30’ to get subsidy, solar module severe supply shortage will last from start of May to 15th,June. At present, supply capacity of whole marketis only 7 to 8GW, while demand for on-grid is up to 15GW”, YingRongFang said.


Dive price after 6.30 may not happen again

During same period of last year,solar module price faced a sharp drop after 6.30, which caused serious danger to the solar PV industry, it is so serious that government published supplement target to aid the market last year.

But in the sight of senior executives of above leading companies, this similar sharp may not happen.

“Predicted price and trade volume drop will be relative slight, as there will be subsequent support from emerging Indian market and lately published “Top RunnerProgram. As the “Top Runner” programe will be delayed by capacity limit and cost, it may be carried out until 9.30 (30th, September) or more later, so the slack season in the next half year will not be the same as last year.” XinQiu,vice president of Hareon Solar Said.


Outdated Capacity Recovering
With hot market beyond expectation, some outdated capacity that had already stopped production comes back again.

YingRongFang expressed his worries,”In ZheJiang area, some low end capacity ranging from 100MW to 200MW comes back to request for OEM for our brand.We will not use these capacity to supplement our lack capacity,because their production condition can’t meet standards of our product. But presently,during this short of supply period, the low quality solar modules from low end capacity are still coming back to flow into the market”.


Original Article:

Translated by Pruce Wu on 1th, June,2017.


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