PV module shipments surge: large companies reproduce demand
September 03 07:40:00, 2025
**Abstract**
After the introduction of the photovoltaic electricity price subsidy policy, the development of solar power plants in western China accelerated rapidly. Industry insiders revealed that during the fourth quarter, a surge in construction projects led to high demand for components. Many major manufacturers were operating at full capacity, and some even faced production gaps and supply shortages. The component market became extremely competitive, with companies scrambling to secure shipments.
In response to the rush, many component suppliers reported increased orders and tight supply chains. Meng Xianyu, vice chairman of the China Renewable Energy Society, explained that because the electricity price in the west is set to drop from 1 yuan/kWh to 0.9 yuan/kWh next year, companies are trying to complete their projects before the end of this year. This surge in demand has driven up downstream requirements, leading to a sharp increase in component sales.
According to a report from a market research institute, first-tier enterprises have nearly reached full capacity utilization. Some companies have already placed orders for the end of the year, while others have locked in orders for the first quarter of the following year. Component factories experienced significant order backlogs in November and December, highlighting the current tightness in the supply chain.
Xu Jie, general manager of Aerospace Electromechanical (600151.SH), a key player in the solar power plant industry, stated at the "2013 China PV Power Plant Annual Meeting" that companies are rushing to purchase equipment, making it difficult to acquire components without immediate cash payment. Some insiders noted that certain components are now in short supply, with some cases where even full payment couldn't guarantee delivery.
Gu Lijun, a senior consultant at Solar PV Network, told reporters that with limited growth in exports to Europe, Japan, and the U.S., the current demand for components is primarily driven by the domestic market. Despite the supply shortage, prices remain stable.
Why did the solar module market shift from overcapacity to a situation of supply shortages? Meng Xianyu pointed out that the shortage mainly affects large manufacturers. Since photovoltaic power plants need to operate for 20 years and are subsidized based on energy output, operators tend to prefer well-known brands due to better efficiency, quality, and after-sales support.
Additionally, Gu Lizhen believes that after industry consolidation, the market is now dominated by large-scale enterprises and listed companies that can secure orders, while smaller firms often rely on OEM production. Unlike previous years, when most companies saw strong shipment growth, the current situation shows more uneven demand.
Meng Xianyu also noted that component prices have risen from below 4 yuan/watt last year to between 4.2 and 4.5 yuan/watt. However, despite the price increase, overall production capacity remains sufficient. In the first half of the year, domestic solar module production capacity exceeded 40 GW, with output reaching around 11.5 GW. It's estimated that annual output could reach 24 GW, meaning that component prices are unlikely to spike sharply in the near future.