According to TrendForce's China Photovoltaic Industry Bidding Database, approximately 7.9GW of photovoltaic components were tendered in May 2024, a 76% decrease compared to the previous month. In terms of project types, the majority were distributed projects, while large-scale component procurement projects decreased. From January to May 2024, approximately 78.7GW of N-type components were tendered, accounting for 83.5%. In May, the bidding volume of N-type components was 7.24GW, accounting for 91.6% and penetration rate accelerated.

Figure: Monthly bidding capacity of domestic components from 2023 to May 2024 (MW)

Demand for double-sided components continues to rise, and 166-inch sizes are approaching market exit

In terms of type, 55.2GW was double-sided component bidding scale, accounting for about 58.6%, and double-sided double-glass bidding scale accounted for about 24% (22.3GW). In terms of size, the demand for large (182*210) components was about 94.24GW, accounting for 99.99% in the 94.25GW component bidding, while the 166-inch size is approaching its market exit and accounts for only 0.01%.

Figure: The proportion of single and double-sided bidding and different sizes of domestic components, unit: %

N-type component bidding prices hit a new low in May, and internal competition continues

In terms of bidding prices, the opening prices of N-type components hit a new low. In May, about 10.2GW of N-type component bulk procurement were opened for bidding, with bidding prices ranging from 0.76 to 0.95 yuan/W, and the average bidding price was 0.831 yuan/W, a 5.13% decrease from the previous month. Among them, on May 26, Beijing Energy Group Co., Ltd. opened bids for the purchase of 10GW photovoltaic module frame agreement from 2024 to 2025. Twenty-five companies participated in the bidding, and the bidding price was 0.803 yuan/W, with a minimum price of 0.76 yuan/W, which was significantly lower than before. Whether first-line or second-third-line companies, they are actively competing for bids. First-line companies adhere to the bottom line of 0.8 yuan/W, and competition intensifies among some new second-third-line companies, with prices hitting new lows. Among them, 10 companies offered prices lower than 0.8 yuan/W, and the remaining 15 companies offered prices between 0.8 yuan/W and 0.834 yuan/W. Currently, the photovoltaic industry is deeply mired in a price war, and the quotes of some second-third-line manufacturers with higher costs are lower than those of first-line manufacturers, and the internal competition in the industry continues to intensify. As demand for P-type components decreases, there were no new P-type component projects opened for bidding in May.

Figure: Trend of bidding prices for domestic N-type components from April to May 2024, unit: yuan/W

From the results of the component bidding (including shortlisted candidates), the bidding results and shortlisted candidates for January to May 2024 have been publicly released, with a total volume of 142.2GW. Of which, the scale of bids won by first-tier enterprises accounted for 42%.

From the bidding results of components (including winning candidates), the results and winning candidates announced from January to May 2024 totaled 142.2GW, including 82.8GW of determined bidding and 59.4GW of the first winning candidate. In the bidding results of components (including winning candidates and the first winning candidate), four first-tier enterprises, Jinko (688223.SH), Longi (601012.SH), Tongwei (600438.SH), and JA Solar (002459.SZ), with a total scale of 59.5GW, accounted for 42%. The top 10 component companies, Jinko, Longi, Tongwei, JA Solar, Aikosolar (688599.SH), OneStop (002475.SZ), Attes (688472.SH), Risen Energy (300118.SZ), GCL System Integration Technology (002506.SZ), and Chint New Energy, have a total scale of 76.7GW, accounting for 54%.

Figure: Scale of domestic photovoltaic component bidding procurement winning bids from January to May 2024, unit: MW

Overall, the volume of domestic component bidding in May decreased significantly. In terms of project types, the majority were distributed projects, while large-scale component procurement projects decreased; in terms of bidding prices, the opening prices of N-type components hit a new low of 0.831 yuan/W, a decrease of 5.13% compared to the previous month, and internal competition in the industry continued to intensify; the scale of bids won by first-tier enterprises remained considerable, with the top 10 component companies accounting for 54%.