Chinese Solar Module Manufacturing Giants Implore State Intervention With ‘Out of Control’ Glass Prices and Shortage

PVTIME – Major Chinese solar module manufacturing giants JinkoSolar, LONGi, Trina Solar, Risen Energy, JA Solar, and Canadian Solar pleaded with the State to intervene and assist with solar glass shortages and “out of control” prices in a joint statement issued yesterday.

[Full text of joint proposal]

2020 has been a very unusual year for the development of the photovoltaic industry. The industry has experience many twists and turns with the epidemic situation, the delay in work resumption, and “6/30” policy induced rushed installations. However, the people of the photovoltaic industry are marching ahead, the industry is developing well, and the demand for modules is showing an explosive growth trend. Especially in the just-concluded Fifth Plenary Session of the 19th Central Committee of the Communist Party of China, the government clearly proposed to support green development. During the “14th Five-Year Plan” period, the total discharge of major pollutants will continue to decrease and the ecological environment will continue to improve. In the context of the positive development of the industry, glass production capacity in the upstream of the industrial chain is facing a serious shortage, which has seriously affected the production and delivery capacity of photovoltaic modules. In the Chinese-style end-of-year rush to install, the immediate problem caused by the imbalance of supply and demand has resulted in the rapid jump in the price of solar grade glass. The average price of 3.2mm glass per square meter has risen by more than 100% since July this year. The “out of control” glass supply and price directly affects the normal production of modules for manufacturers. The photovoltaic industry has become a prominent industry of China on the world stage, and the shortage of glass leads to many overseas orders being difficult to be delivered, which affects the reputation of enterprises and even the country.

Presently, the impact of the epidemic has not run its course. The Party and the State have reviewed the situation and put forward the policy of “six stabilities” and “six guarantees” to ensure the stable and healthy development of China’s economy. However, current production throughout the entire photovoltaic industrial chain has reduced or even stopped due to the shortage of glass production capacity. The development of the photovoltaic industry has already fallen into a “dilemma”. For this reason, Canadian Solar, Risen Energy, JA Solar, JinkoSolar, LONGi, Trina Solar (listed in no particular order), and other major photovoltaic module companies appeal to the State:

1.The severe shortage of glass production capacity has caused a serious crisis in the scheduling and shipment of module companies. At present, we are actively coordinating resources and doing our best to “guarantee supply.” During this special period, we urge the relevant state departments to consider easing the year-end “rush for installation” of the photovoltaic market and guide the orderly progress of the projects.

2.The severe situation regarding current module supply has place module companies in a very difficult situation. Due to the serious “falling behind” of glass production capacity and the serious shortage of total module supply, photovoltaic module enterprises have generally experienced large-scale delays in delivery. It is hoped that power plant investment enterprises can fully understand the current situation and actively respond to avoid or reduce losses caused by missing the grid connection deadline.

3.As “participants” and “builders” for photovoltaic industry development, the upstream and downstream of the industrial chain should work hand in hand to overcome the difficulties. The upstream glass manufacturers should take the initiative and act actively, and work together with downstream module companies to guarantee the supply. By employ “we are in it together” as our motto and we can maintain the healthy development of the photovoltaic market from the perspective of sustainable development.

4.The current capacity bottleneck of the glass industry is the direct cause of the “urgent situation” in module supply. It is hoped that the state will give full consideration to the urgent situation faced by the industry and relax the restrictions on the expansion of photovoltaic glass production capacity.

November 3, 2020

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