More than 30 solar companies in China are set to begin managing their production capacities starting next month, according to industry insiders. Several executives from photovoltaic (PV) manufacturers have confirmed their participation in a self-discipline agreement aimed at controlling output.
From Science and Technology Innovation Board Daily
More than 30 solar companies in China are set to begin managing their production capacities starting next month, according to industry insiders. Several executives from photovoltaic (PV) manufacturers have confirmed their participation in a self-discipline agreement aimed at controlling output. Under the terms of the agreement, each company will be assigned specific production quotas, based on their shipment volumes and production capacity this year.
Gao Zelong, co-secretary-general of the New Quality Production Force Committee under the China National Association of Industry and Commerce, noted that industry leaders are gradually aligning on a shift from focusing on price competition to prioritizing product quality. Leading companies are voluntarily scaling back production while maintaining prices, a move intended to address overcapacity issues and stabilize market prices. This shift is also supported by policy measures that aim to ensure the long-term health of the solar industry.
Xu Baiqiao, an analyst at Haitong Securities, emphasized that the current policies offer clear guidance on both production capacity and pricing in the solar sector. With the industry moving towards a market correction and an end to harmful price wars, a price increase is expected in the near future. Xu also recommended that investors pay close attention to the potential for significant growth as the market transitions to a more sustainable model.