Solar Cell Prices Surge Amidst China's Production Cuts and Growth Plan
Solar cell prices have seen a significant uptick, with Topcon cells rising by 24.4 percent since early July. Meanwhile, the China Photovoltaic Industry Association (CPIA) has enforced stricter production quotas, and the Ministry of Industry and Information Technology (MIIT) has unveiled a growth plan for the sector. The surge in Topcon cell prices comes as FOB prices for the M10 format reached 0.0387 US dollars per watt in China, marking a 1.04 percent increase. This rise is partly attributed to the CPIA's move to tighten production quotas, with a major 210R cell manufacturer recently ordered to reduce output for exceeding its quota. Manufacturers face margin pressure due to persistently high polysilicon costs and stable overseas demand. Despite this, the MIIT and the State Market Regulatory Administration have published a growth plan targeting high-quality development in sectors like photovoltaics by 2025-2026. Daniel Schmitt, CEO of Memodo, a wholesaler for photovoltaics, storage, and other energy systems, described the 2025 residential photovoltaics market as highly pressured. He cited massive price declines, extreme competition, oversupply, and cautious customer investment behavior. However, some companies are benefiting due to low fixed costs and holistic energy solutions. While spot market demand for Chinese solar cells is expected to remain subdued, industry associations and the government plan to introduce a legally binding price floor for solar modules at 0.759 yuan per watt (0.098 dollars) FOB in the fourth quarter of 2025. This move aims to stabilize the stock market today and promote high-quality growth in the photovoltaics sector.
