Industry expert Davis Chong forecasts that the current low prices of solar panels, which have substantially decreased in the past year, will persist for up to two years. Chong, the President of the Malaysian Photovoltaic Industry Association, highlights key insights into the global solar market trends and implications for the industry.
Market Dynamics: Supply-Demand Imbalance
Chong underscores a significant imbalance between upstream supply and downstream demand, attributing it to the rapid expansion of manufacturing capabilities. Manufacturers in Malaysia, a leading producer of solar photovoltaic modules, are recalibrating their expansion strategies to align with market realities, anticipating a gradual adjustment over the next one to two years.
Global Opportunities Amidst Price Decline
While acknowledging the challenges posed by plummeting prices, Chong sees a silver lining, emphasizing the opportune moment for accelerated deployment of solar projects worldwide. Lower prices present a favorable environment for governments and industries to leverage solar energy, provided there are supportive policies and transparent regulations in place.
Impact on Global Manufacturing Landscape
The drastic reduction in solar panel production costs in China, a dominant player in the global market, has triggered a ripple effect across the industry. European manufacturers, grappling with competitive pressures from Chinese imports, have announced factory closures in response to pricing challenges.
Long-Term Implications and Solarvest’s Expansion Plans
Chong dismisses concerns over the Biden administration’s efforts to incentivize domestic solar manufacturing, asserting that China’s stronghold on the global supply chain remains unchallenged. Despite potential disruptions, Solarvest, under Chong’s leadership, is poised for expansion, with plans to raise equity funding and ramp up solar capacity to 2 GW by 2025, signaling confidence in the long-term prospects of the solar energy sector.
As the solar market continues to evolve, stakeholders must navigate the complexities of supply-demand dynamics and regulatory landscapes to capitalize on emerging opportunities and drive sustainable growth in the renewable energy sector.
Source：dunyanews.tv
