Covid-19 pandemic has significantly impacted the solar industry in China: by far the largest supplier of modules and raw materials for module assembly.
The Chinese government’s temporary moratorium on commercial activity resulted in several factories being closed for the short term. The decline in necessary primary materials production and stringent quarantine requirements have disrupted industrial output, with factory utilisation rates plummeting significantly.
It is anticipated that the existing inventory supplies will play a major role in restricting any increase in post-Covid-19 solar module prices during Q1 2020, which is estimated to increase to $0.25/W from $0.24/W in Q4 2019. Despite the gradual recovery in other industries, the lingering effect of production drops will see post-Covid-19 module prices at approximately $0.27/W in Q2 2020.