The year 2024 has proven challenging for the photovoltaic (PV) industry, with manufacturers grappling with shifting requirements for supply chain traceability, carbon footprint disclosures, and market conditions characterized by solar oversupply and unsustainably low module prices. Despite these challenges, PV manufacturers like Longi Green Energycontinue to play a vital role in the global energy transition. Haimeng Zhang, Chief Strategy and ESG Officer at Longi, recently discussed these issues and the company’s approach to addressing them.
Navigating Ultra-Low Module Prices
The solar module market is currently defined by extremely low prices, making profitability difficult for manufacturers. According to Haimeng Zhang, if production continues to outpace demand, prices could remain unsustainable. He emphasizes that the industry must correct to a price range of $0.12/W to $0.13/W, which would allow for minimal margins and future investment in research and development. The current pricing strategy is not helping expand the market and, in fact, solar adoption barriers have shifted from cost to energy storage and grid capacity challenges.
Zhang believes that to stabilize the market, some manufacturers, especially in the polysilicon segment, need to reduce capacity. Excess production and low profitability cannot be maintained indefinitely, and a correction may happen sooner than expected as companies struggle with financial losses.
Longi’s Commitment to ESG Practices
With increasing expectations from investors, regulators, and customers, Longi is stepping up its environmental, social, and governance (ESG) initiatives. The company has implemented a “zero carbon factory” concept in China, using hydropower and on-site solar to minimize carbon emissions during production. However, Longi faces hurdles with certification bodies that do not recognize Chinese hydropower as zero carbon due to regional energy mix standards rather than specific project data.
Longi is focused on reducing Scope 1 (direct emissions) and Scope 2 (energy supply emissions) through genuine decarbonization efforts rather than merely buying carbon credits. For Scope 3 emissions, which include the broader supply chain, Longi collaborates closely with suppliers to align with sustainable practices and meet customer expectations.
The Cost of Low-Carbon Modules
Developing low-carbon solar modules comes with additional costs that Longi plans to manage in collaboration with customers. These modules may initially be more expensive, but they represent a collective effort across the entire supply chain to reduce emissions and make solar manufacturing more sustainable. Over the lifetime of a solar panel, the energy yield far outweighs the energy required for its production, underscoring the significant environmental benefits of this technology.
Recycling and the Future of Solar Manufacturing
Longi is actively exploring ways to incorporate recycled materials, particularly in module frames, to further reduce the environmental impact of solar manufacturing. While the current recycling value of solar modules is limited, due to the long lifespan and diminishing use of precious metals, Longi recognizes the importance of developing products that are easier to dismantle and recycle.
The company is working with industry partners to establish design standards that facilitate easier recycling processes, avoiding hazardous materials and reducing the overall carbon footprint. Longi aims to make its solar modules more sustainable from production through to end-of-life management.
Social Responsibility and Supply Chain Management
Supply chain ethics, particularly forced labor concerns, remain a critical aspect of ESG for Longi. The company has developed separate supply chains outside of China to comply with various international regulations, especially for the U.S. market. While this adds to production costs, it ensures that Longi can provide fully traceable and ethical products that meet stringent customer and regulatory requirements.
For European customers, Longi is advancing towards automatic traceability documentation via QR codes, offering complete transparency on the origins and processing of materials used in its modules. This approach reflects Longi’s commitment to responsible sourcing and maintaining high standards across its operations.
The Solar&Solar Wholesale is proud to be a key partner of Longi Solar, offering a wide range of Longi solar panels in both residential and commercial quantities. As a preferred distributor, Solar&Solar ensures that customers have access to the latest and most efficient Longi products, supporting the transition to clean energy. By stocking Longi Solar panels, Solar&Solar is committed to providing high-quality solar solutions that meet the evolving needs of the renewable energy market.
Explore our offerings and join the movement towards sustainable energy with Longi Solarpanels available at Solar&Solar Wholesale.