Changing Global Solar PV Supply Chain Dynamics – Oversupply Woes To Affect Profitability

The global solar PV supply base is currently going through a transition, owing to a significant capacity addition. The supply base has grown significantly, while there are indications that the installations growth rate would slow down as leading PV countries cut PV tariffs.

However, companies across the PV supply chain have continued to expand their capacity bases. This has resulted in a scenario of oversupply that will trigger changes in the PV supply chain such as market consolidation, inventory pile-up, declining module prices, shrinking supplier margins, technological role-change and changing commercialization strategies for PV players.

 

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