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Supply Trend Alert for Solar Industry

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As your trusted partner and distributor, BayWa r.e. is committed to do the best it can to support your demands.

In line with this, we would like to advise you of recent challenges the entire solar industry is experiencing in supply chain due to upstream material and production constraints. The main factor driving this market condition is the policy imposed by National Development and Reform Commission of China (“NDRC”) mandating “dual control of energy consumption.” This policy puts regulatory pressure in China to meet energy use targets for 2021 resulting to extended power restrictions to at least 20 provinces and regions where most manufacturing hubs are located.

Major suppliers based in China have been impacted by this unforeseeable shortage of power supply and raw materials. Products affected are those with electrolytic components (battery), aluminium, glass, industrial silicon and other commodities that are now in short supply or require significantly longer production lead time than usual. These market restraints are coupled with logistical and port challenges that is forecasted to intensify towards year-end due to the global economic imbalance brought about by the pandemic.
 
PV modules have seen significant price increases. We are seeing major PV module suppliers invoking ”force majeure” as factories reduce or completely halt production. This leaves us now with low supply against high demand which is resulting in price increases, delays and cancellation of orders.
 
During these tumultuous market conditions, supply planning is imperative to enable BayWa r.e. to support your business needs. We urge you to actively communicate your needs ahead of time and plan with your respective BayWa r.e representatives. Though our inventory level is planned according to market demand, we also see that Q4 2021 and Q1 2022 projects in the Southeast Asia region are ramping up. Our priority is to ensure we deliver the goods required for your project/s smoothly and according to plan.
 
BayWa r.e. is committed to delivering the best reliable service and products to all its customers. We are focused on providing exemplary support, especially at this critical time of the year.

Please feel free to contact your respective sales representative if you have any questions.

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Salim Pathan
PR contact APAC
BayWa r.e. AG

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