Solar panel prices rise after China clampdown on producer competition

{"text":[[{"start":7.35,"text":"China’s efforts to curb a brutal price war between its dominant solar-panel makers have started lifting prices, raising the prospect of the end of the era of ever-cheaper cells that drove surging uptake of the technology. "}],[{"start":20.549999999999997,"text":"Module prices have steadily climbed from 9 cents per watt at the end of December to 11.4 cents per watt as of April 15, according to data from BloombergNEF, InfoLink and Bloomberg BGN. "}],[{"start":34.8,"text":"The increase is the result both of a rally in silver, a key constituent of solar panels, and China’s efforts to curb fierce price competition that led to billion-dollar losses at some of the country’s biggest producers. "}],[{"start":48.349999999999994,"text":"“We reached the bottom,” said Yana Hryshko, head of solar supply chain research at consultancy Wood Mackenzie, who forecasts prices could rise further to 15-16 cents per watt this year.  "}],[{"start":61.74999999999999,"text":"“Everything that could be done to reduce manufacturing costs has been done. Manufacturers [now] need to earn money.”"}],[{"start":69,"text":"While there have been occasional spikes, solar panel prices have fallen rapidly from about $2 per watt in 2010, driven by Chinese manufacturers that now account for more than 80 per cent of global production. "}],[{"start":82.25,"text":"The plunging cost of the technology has stoked rapid adoption. There were an estimated 2.9 terawatts of solar installed globally as of the end of last year, according to estimates from energy think-tank Ember, supplying about 8 per cent of global electricity. "}],[{"start":98.2,"text":"Ember calculates that renewables, largely solar power, last year reached the landmark of generating more electricity globally than coal-fired power. "}],[{"start":107.25,"text":"However, much of China’s solar sector has been selling below cost due to fierce competition, racking up huge losses and fuelling concerns in Beijing about deflation, even as it boosts China’s trade surplus and tightens its grip over a strategic industry."}],[{"start":122.15,"text":"An International Energy Agency report in October said China-based solar companies had made cumulative net losses of around $5bn since the start of 2024."}],[{"start":133.65,"text":"Leading manufacturer Longi reported losses totalling about $2bn during 2024 and 2025, while rival Jinko Solar made roughly $450mn loss in 2025."}],[{"start":null,"text":""}],[{"start":147.25,"text":"The government has taken steps to reduce overcapacity, including cutting tax rebates for solar panel exports. The move has pushed manufacturers to raise prices and also created a surge in demand as customers tried to get ahead of the change, effective from April. "}],[{"start":162.5,"text":"Analysts do not expect the rise in cost to limit demand for solar, given it remains cost-competitive against other technologies. However, the price rebound marks a structural shift in the sector and highlights some of its challenges. "}],[{"start":175.65,"text":"The price of silver surged to record highs in January amid tight supplies and concerns about global political instability, although they have since tempered. "}],[{"start":186.20000000000002,"text":"Xiande Li, chair of leading Chinese solar manufacturer Jinko Solar, told investors last month that higher silver prices and the expected tax changes had led to a “significant sequential rebound in module prices”, adding that he now expected them to remain relatively stable.  "}],[{"start":203.65,"text":"“Government policies are guiding the industry away from pure competition on scale and price towards a focus on genuine quality and value,” he added, in comments published alongside the company’s annual financial results. "}],[{"start":217.5,"text":"“Leading companies have been actively supporting government initiatives to return module prices to reasonable levels.”"}],[{"start":224.7,"text":"The increase in panel costs comes as the Iran war is disrupting supplies of fossil fuels around the world, potentially leading to an increase in demand for solar panels as energy users seek alternative sources. "}],[{"start":238.04999999999998,"text":"Ember’s analysis shows that China’s solar exports doubled month-on-month to a record 68GW in March, partly due to the impending tax changes."}],[{"start":null,"text":""}],[{"start":254.35,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1777957120_6859.mp3"}