Shanghai is hosting the world’s largest solar event this week. The SNEC PV+ Conference is running until Friday. It brings together solar makers, energy experts, and government officials. Around half a million people are expected to attend.
But this year’s gathering comes at a time when China’s solar panel shelves are getting full. Production is high. Demand is not keeping pace. This mismatch is causing prices to drop.
Solar panel output in May fell by 7% from April. It is expected to fall another 4–5% in June, according to data from Shanghai Metals Market. But even with this dip, Chinese factories are still producing far more than the world is buying.
Module prices have dropped nearly 30% from last year, based on OPIS data. Some companies are making panels for less than what it costs to produce them. The pressure is growing, and many are now slowing production.
China had earlier encouraged a rapid build-out of solar projects. But now, new policies are changing the math. Projects launched after June 1 will no longer receive a fixed price for power. They must sell electricity into open markets. This means new solar farms will have to compete with coal and other power sources, with no guaranteed price.
Some provinces are still deciding how these new auctions will work. In Inner Mongolia, local officials have said there will be no price guarantees at all. Some developers see this as a sign to hold off.
Solar companies like Trina and Longi are expected to speak during the conference. Many are watching to hear how they plan to adjust. New plans, perhaps exports or storage integration, may be part of the conversation.
Even with big changes ahead, smaller solar projects are still moving forward. In Shanghai, a rooftop system on a public bus station is quietly generating 1.2 megawatts. A solar-powered ferry charger is also being tested along the river.
