Analysts say China’s proposed export curbs on key solar technologies could backfire and hurt domestic giantsApso Tech
China’s proposed export curbs on key solar technologies.
Chinese authorities have proposed restricting exports of advanced solar technologies such as large wafers, black silicon, and ultra-high monocrystalline and multi-crystalline silicon. This is being done to maintain China’s global industry dominance. However, analysts warn that the move may backfire on Chinese firms.
Dennis Ip, the solar analyst at Daiwa Capital Markets, cautioned that the export curbs could hamper Chinese firms’ expansion plans in Southeast Asia and their ability to develop wafer capacity in the US. He said that while China has been able to dominate global markets with low-priced products, “the technology gap is still wide and they (Chinese firms) need to expand more abroad to learn more advanced technologies.”
Further, Longi Green Energy Technology Co Ltd’s record-breaking solar cells are unlikely to reduce electricity bills in the short term. The company achieved a world record for the efficiency of its monocrystalline PERC (passivated emitter rear contact) cells. Still, analysts say that it will take years before this translates into reduced electricity bills.
Moreover, China’s solar panel price war has been driving down renewable energy installations globally, causing other countries to lose out on their potential market share. Restricting exports of fundamental components used in manufacturing these panels could further reduce China’s competitive edge and disrupt the global market.
In short, China’s proposed export curbs on key solar technologies could backfire and hurt domestic giants. The move may limit their ability to increase production capacities abroad and cause other countries to lose out on potential market share in the renewable energy sector. Thus, China needs to weigh the possible long-term effects of such restrictions before implementing them.
By considering these considerations, China may maintain its dominance in the global solar industry without damaging its interests.
Longi’s record-breaking solar cells will ‘take years’ to cut electricity bills.
Longi Solar, China’s largest solar panel maker, has achieved a world record with its recently-developed advanced mono PERC (Passivated Emitter Rear Contact) cells. The new design of high-efficiency solar cells is the company’s latest effort to outpace competitors in the global PV market.
Experts say these new cells could significantly reduce electricity bills over the next few years. However, these reductions will still be far from what China had promised when its massive solar expansion started a decade ago.
That is because Longo’s new cells are only part of the story behind China’s solar ambitions. The country’s government has invested billions of dollars in a massive effort to build up its home-grown solar industry, and China now dominates the global market for solar equipment.
These investments have enabled Chinese companies like Longi Solar to produce cheaper solar panels than rival manufacturers from other countries. But this competition has also led to criticism that China needs to do more to protect its own solar companies. The nation’s proposed export curbs on key solar technologies could backfire and hurt domestic giants like Longi Solar.
For now, though, Longy’s record-breaking solar cells will still take years to cut electricity bills significantly. Despite this, China remains committed to its long-term goal of becoming the world’s biggest producer of renewable energy. With its investments in home-grown solar manufacturing, China is aiming to drive installations of solar panels and take a leading role in the global transition toward renewable sources of power.
It remains to be seen how successful China’s efforts will be. Analysts said it is understandable for China to want to maintain its solar sector dominance for longer, given the investment the nation has put in. The US, European Union, and India are also stepping up efforts to develop their home-grown solar manufacturing industries. As competition heats up, it is clear that China’s proposed export curbs on key technologies could backfire and hurt domestic giants like Longi Solar.
China’s solar panel price war to drive renewable energy installations globally.
China’s solar panel market has recently seen a price war as manufacturers seek to increase their global market share. This intense competition is driving down the cost of renewable energy installations globally, making it more affordable for countries to transition away from fossil fuels and towards cleaner energy sources.
The current price war is primarily driven by China’s leading solar cell and panel producers, Longi and Trina Solar. They have both managed to break records in producing highly efficient solar cells, essential components in building quality modules.
Longi’s record-breaking solar cells will significantly impact global electricity bills as countries switch to renewable energy. The company recently achieved a world record efficiency of 22.2 percent, meaning that its modules can produce more electricity per unit than previous models.
Despite the competitive pressure and China’s proposed export curbs on key solar technologies, analysts have suggested that this could backfire and hurt domestic giants such as Trina Solar and Longi. As competition ramps up in the global market, China’s solar panel makers are likely to benefit and will be able to capitalize on the trend of increasing renewable energy installations.
In addition, the use of larger wafer sizes helps reduce costs even further. Modules incorporating 210mm wafers can reduce the per-watt system cost by at least 0.1 yuan (1.4 US cents), according to Jiangsu province-based Trina Solar. This will help further drive down the cost of renewable energy installations and make it more accessible for countries, businesses, and individuals worldwide.
Overall, China’s solar panel price war is driving down the cost of renewable energy installations globally, making it more affordable for countries to transition away from fossil fuels and towards cleaner energy sources. The competition between China’s leading solar panel producers will likely continue, with Longi and Trina Solar setting new records in efficiency that further drive down the cost of renewable energy installations. The use of larger wafer sizes is also helping reduce costs even further. This price competition benefits country and businesses transitioning to renewable energy sources, enabling them to access clean energy at increasingly affordable prices.