polysilicon

The input costs of the two biggest contributors to solar plant development expense have gone through the roof since the world began to come out of Covid-19 lockdowns, to leave project developers with some difficult choices.

Elsewhere, cell maker Aikosolar has announced two major wafer purchase agreements with manufacturers Shuangliang and Shangji, and Zhonghuan Semiconductor has reported solid financials for the third quarter.

The past 12 months have proved profitable for polysilicon manufacturers, as selling prices have soared to levels not seen since 2011. However, with major new capacity expansions on the horizon from most of the leading manufacturers, and new players planning to enter the scene, the market balance looks set to shift. Exawatt’s Alex Barrows rounds up where the industry stands and what might happen next.

This week saw prices in the polysilicon segment, and further downstream, rise again, with no end in sign. National Energy Agency statistics show a slowdown in installations for the second consecutive month in September. Manufacturers, however, continue to purchase components and materials in the expectation that prices will rise even further.

Factories suffering from rationed grid electricity could help drive a boom in on-site solar systems, and recent moves to mandate the retrofitting of PV on existing buildings could also lift the market, as analyst Frank Haugwitz explains.

Industrial shutdowns and reduced factory production capacity levels indicate the companies producing the raw materials used by solar manufacturers are being afflicted by electricity consumption measures just as other sectors are. It is not clear whether the solar industry will be afforded any favors by Beijing, as analyst Frank Haugwitz explains.

As the solar market enters the busy season in September and October, module utilization rates are reaching 70% to 85%. However, structural shortages remain in the supply chain, with polysilicon supply running short in the face of high demand, writes PV InfoLink analyst Amy Fang. Prices, which were expected to stabilize, rose again in the second half. High module prices will cast a shadow on demand in the fourth quarter, prompting module manufacturers to postpone delivery for some orders from the second half into next year.

Wind power specialist Mingyang Smart Energy has revealed plans to build a 5 GW heterojunction module factory in China’s Jiangsu province, while TBEA has said it intends to raise its majority stake in Xinte Energy from 62% to 67%.

The 2 GW plant is expected to be connected to a storage facility with a capacity of 300 MW/600 MWh. Elsewhere, manufacturers Longi, Jinko, Trina Solar and Chint were the winners of a 5.5 GW solar panel procurement tender held by the China Energy Investment Corporation.

Shuangliang Eco-Energy has agreed to buy a total of 134,950 MT of polysilicon from two different manufacturers. Furthermore, the Chint group said it wants to deploy another 3 GW of rooftop solar and PV InfoLinks reported on rising glass prices.