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Trina Solar and LONGi Increase Prices of Solar PV Modules, Other Major Players to Follow

After a period of declining prices, major Chinese solar manufacturers, led by Trina Solar and LONGi, are now reversing the trend with price hikes, marking a positive shift towards profitability in the PV industry.

October 30, 2024. By Mrinmoy Dey

After a regime of declining prices, major Chinese players are now increasing prices of their solar modules. For example, Trina Solar announced a price increase of 0.03 CNY/W for its entire range of solar modules, last week. Couple of days later, LONGi declared a 1-2 cent increase in the price of its B-type modules.

Other major manufacturers, including Tongwei Solar, Jinko Solar, and JA Solar, are expected to implement similar price hikes of between 1-3 cents CNY. This marks a reversal of trend and in fact, is a good news for the health of the solar PV industry. Finally, they are moving towards profitability ending a price war of sorts.

In August, major Chinese players announces increase in prices of silicon wafers, a key component in solar PV Cells. However, the push for this has come from the Photovoltaic Industry Association. It released an article titled ‘Current Cost Analysis of Photovoltaic Modules: Bidding Below Cost May Be Illegal!’ While suggesting 0.68 CNY/W as the minimum price threshold for PV modules, it urged the companies to avoid undercutting below-cost bids and to focus on maintaining product quality.

While these interventions seem to be working on the short term, long-term stability will likely require stronger policies and joint governance to navigate the pressures of high capital costs, competitive dynamics, and regulatory support.

However, the situation for smaller manufacturers are precarious in the face of overcapacity with some facing difficulties securing orders even at lower prices. Therefore, it may not be feasible for them to increase prices and are adopting a wait-and-see approach.

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