Energy PV-tech Suspends Solar Cell Production

PVTIME – Zhejiang Energy PV Technology Co., Ltd. (Energy PV-tech, 834770.BJ), recently announced the suspension of production of its polysilicon solar cells due to lack of demand.

The decision to suspend production was made due to the rapid decline in silicon cell prices in 2023, which made Energy PV-tech’s cell prices uncompetitive in the market. The suspension was expected to last until 31 March 2024, with a restart planned upon receipt of new orders for its solar cells. However, new orders were not available, and the production line for BSF solar cells had to be shut down.

Energy PV-tech’s market share of BSF solar cells decreased from 2.5% in 2022 to 0.5% in 2023. Energy PV-tech is considering whether to invest in additional equipment to convert their current polycrystalline silicon cell production line technology to produce monocrystalline silicon cells. The production process for monocrystalline silicon cells differs from that of polycrystalline silicon cells, which is why the company is uncertain about the investment. The demand for large-scale replacements of solar cells in PV power stations is not expected in the short term, as their operating cycle is at least 20 to 25 years.

Additionally, the average price of solar cells dropped by 66.36% from 1.10 yuan/W in April 2023 to 0.37 yuan/W on 27 March 2024, according to data released by ifind. Compared to other manufacturers producing and selling p-type or n-type cells, Energy PV-tech’s solar cells were uncompetitive. In 2023, the prices of Energy PV-tech’s polysilicon cell sales were in a downward trend. Its solar cell price and sales volume declined from 3.25 yuan/piece and 22,338,000 pieces in the first quarter to 3.01 yuan/piece and 26,834,200 pieces in the second quarter, and further to 2.19 yuan/piece and 1,998,600 pieces in the third quarter, representing a decline of 27.24% and 25.47%. In the fourth quarter, the number of pieces sold decreased by 28.31% and the price per piece decreased by 78.47% year over year. The price per piece dropped from 2.19 yuan to 1.57 yuan, and the total number of pieces sold was 4,304,900.