Executives of Jinko Solar, Trina Solar, Longi Green Energy Technology, and other leading Chinese photovoltaic companies attended the Bloomberg New Energy Finance Summit in Shanghai, discussing the impact of PV modules' falling prices on the industry while giving capacity and shipment insights.
Fast declines in module prices are bad for the whole supply chain, said Gao Jifan, chairman at PV equipment giant Trina Solar. The price dropped to CNY1 (14 US cents) per watt from CNY2 per watt in one year, and some bidding prices are even lower than CNY1 per watt, pointing to some issues, Gao added.
The BNEF Summit, which began yesterday and ends today, provides the ideas, insights, and connections to formulate successful strategies, capitalize on technological change, and shape a cleaner, more competitive future, according to its website.
Falling module prices will drive the development of the solar industry, according to Li Xiande, chairman of solar panels maker Jinko Solar. Even if the price drops to CNY1 per watt, integrated PV firms with advantages in technologies or costs have relatively good opportunities to make profits, though they might be less than before, Li said.
Irrational prices of almost CNY1 per watt recently hit PV panels, Li Zhenguo, president of Longi, said at an earlier meeting on the Guangzhou-based firm's third-quarter performance. It's hard for players across the supply chain to be profitable under this level, he noted, adding that even integrated supply chains can only barely survive.
Some executives of PV companies also gave their installed capacities and delivery outlooks for this year at the summit.
The global installed capacities should be more than the amount expected early this year, according to Lu Chuan, chairman of electrical components maker Chint Group's Zhejiang Chint New Energy Development. That in the Chinese market was way more than predicted, he noted.
Many stocks accumulated in Europe in the first and second quarters of this year, Lu added. Impacted by this, channel customers globally faced larger impairments when delivering goods, which slowed down shipments in the third quarter, he pointed out.
The industry's capacities also increased quicker than market needs, causing the gap between the PV firms' shipment expectations and actual deliveries, he said. For PV companies, deliveries may be slightly fewer than the figures planned early this year but will still align with overall forecasts, according to Lu.
Jinko Solar delivered many more products this year than expected, bringing pressure to its growth next year, which will not be as fast, Chairman Li Xiande stressed. But market needs will likely continue to grow and increase between 20 percent and 30 percent, he added.
