On October 24, 2024, Trina Solar announced a price increase of 0.03 CNY/W for its entire range of solar modules. Following this, LONGi also declared that the prices of its B-type modules would rise by 1-2 cents, effective October 29.
Additionally, reliable sources indicate that Tongwei Solar, Jinko Solar, and JA Solar will also increase their prices by CNY 1-3 cents. This means that all top five solar module manufacturers have announced price hikes.
Although this increase is not a result of capacity clearing, it brings positive news to the photovoltaic industry, suggesting that rather than continuing an escalating price war, companies are opting to raise prices collectively for mutual profit.
The anticipation of a price increase had already begun circulating in the market last weekend, influenced by an initiative from the China Photovoltaic Industry Association. On October 18, the association released an article titled “Current Cost Analysis of Photovoltaic Modules: Bidding Below Cost May Be Illegal!” announcing 0.68 CNY/W as the minimum price threshold. This guideline prohibits companies from bidding below this cost while ensuring product quality.
The association’s intervention in bidding practices aims to put an end to the price war, sending a positive signal to the industry. Rather than competing alone, companies are encouraged to band together and weather the cycle collectively.
However, despite the potential short-term guidance from the association’s cost guidelines, the long-term healthy development of the industry will still require stronger policies and collaborative governance in the face of high capital pressure, fierce competition, and supportive policies.
As for the smaller players in the market, many are taking a wait-and-see approach and have yet to decide on following suit with price increases. This cautious stance is understandable, as the current state of overcapacity makes it challenging for these companies to secure sufficient orders, even if they lower prices further. Consequently, simply raising their module prices may not resolve their current predicaments.
