Price Cuts to Dominate Photovoltaic Industry Chain in 2023

SHANGHAI, Jan 6 - The prices of products in the photovoltaic industry chain took an abrupt downturn at the end of 2022. Since October 2022, the price of silicon wafers has plummeted, and the price war rapidly spilled over into the downstream battery segment. A recent survey of upstream and downstream enterprises in the photovoltaic industry chain showed that continuous release of new production capacity on the supply side and the seasonal sharp drop in terminal demand severely hit the market sentiment. Buyers tend to hold back from buying amid the downward price cycle.  The prices in the industry chain have not yet bottomed out, and further drop is expected in the short term

Industry insiders said that price reduction will dominate the photovoltaic industry chain in 2023, and the price of polysilicon will return to the normal range of 80,000-120,000 yuan/mt. With the decline in the price of solar modules, the installed capacity of ground power stations, which was previously suppressed by low yields, may usher in a recovery, thus the installed photovoltaic capacity is expected to increase in 2023.

It is worth noting that the cost transmission of falling upstream polysilicon and silicon wafer prices will allow the profits of the downstream enterprises in the photovoltaic industry chain to recover.