The viral outbreak is causing disruptions to Chinese PV production through quarantines, government shutdowns, and threatened subsidies. What investors in solar companies should know along with recommendations to sustain your growth.
The Coronavirus is Disrupting the Panel Supply Chain
Due to the novel viral outbreak that as of February 6th has killed close to 600 people in China, Chinese officials and financial analysts are struggling to gauge exactly what the potential effects will be on the global panel supply.
According to a memo from Roth Capital Partners and reported by GreenTech Media, the key Chinese cities of Jiangsu, Zhejiang, and Anhui are all closed due to government shutdowns until at least February 9th. The shutdowns may reportedly be extended due to requests from top PV panel producers. The incorporated quarantines are severely affecting the workforce and many firms are operating at scarce labor levels.
The Chinese Photovoltaic Industry Association (CPIA) urged top energy officials to postpone March deadlines set by the National Energy Administration due to underproduction and reset them to avoid any issue of cut subsidies.
Roth further noted that within the eight provinces that extended work stoppages, most notably the eastern Jiangsu province, was home to a number of ‘Solar Module Super League’ (SMSL) members major manufacturing hubs, including Canadian Solar, LONGi Group, Trina Solar, Q-CELLS and JA Solar. Late 2019 figures show that the Chinese solar manufacturing industry accounts for around 70% market share of global panel production (Recharge).Â
