In recent months, the solar energy sector has experienced significant shifts. Erwin Damen, Chief Procurement Officer at PVO International, provides insight in this blog into the latest developments regarding solar panel prices, changes in transport costs, and the growth of battery solutions. These factors play a crucial role in the market and directly impact our operations and those of our partners.
Solar panel prices are at a historic low¹. This is largely due to the strong production capacity of Chinese manufacturers. However, this trend could shift as the Chinese government may intervene to regulate the sector and curb overcapacity. At the same time, the United States has recently raised import tariffs on solar panels to 50%², which could further disrupt price dynamics.
Manufacturers are currently in a challenging position, with financial pressures mounting. It is possible that some manufacturers may struggle to maintain their position in the future. To provide our customers with certainty in this unpredictable market, we work as much as possible with high-quality and stable partners. This strategy is reinforced by the strong position of suppliers like Tongwei, Huawei, Jinko, Trina, and Sungrow, who are among China’s top 500 companies. These suppliers are known for their financial stability and reliable products, which is crucial for the continuity of our projects.
Transport costs, particularly sea freight, have been extremely high in recent years. This was due to the high volume of electric vehicles and other environmentally friendly products being shipped from China, which led to increased demand for shipping capacity. As a result, the availability of containers for products like solar panels decreased, and prices rose. Now that fewer of these products are being shipped, there is more balance between supply and demand in the sea freight market, and consequently, prices are declining again.
The demand for energy storage is growing exponentially, both in the residential sector and in commercial and industrial (C&I) applications. As battery demand rises, more and more suppliers are entering the market to develop battery solutions. Not only are existing, stable suppliers expanding their offerings, but many new companies are also trying to break into the market. We are currently seeing hundreds of new players entering the market.
This growing supply makes it more important than ever to find a reliable, high-quality supplier. At PVO International, we have built a carefully curated portfolio of premium brands and products, allowing us to offer battery solutions that excel in quality, efficiency, and compatibility. Our partnerships with proven brands like Growatt, Huawei, Sungrow, SOFAR, and Jinko ensure that we can offer our customers solutions that are both reliable and future-proof.
Another consequence of the rapid increase in new suppliers is the possibility of an oversupply of battery solutions in the near future. This could put pressure on prices and product quality, making it even more critical to choose the right supplier.
Visit our product pages for more information on our battery solutions.
The solar energy sector continues to evolve rapidly. While solar panel prices are at a historic low¹, we must remain mindful of potential government interventions and the changing positions of manufacturers. The growth of energy storage presents enormous opportunities but requires careful selection of reliable Tier 1 suppliers. Additionally, the development of energy storage remains a key focus, with promising possibilities for both residential and commercial applications.
At PVO International, we remain committed to providing our customers with high-quality products, supported by reliable partners and efficient logistics solutions. Follow us for the latest developments in the sector.
