Longi Green says its higher efficiency technology will win the arms race among China’s solar panel producers

Chinese solar panel manufacturer Longi Green Energy Technology believes the right technology will help its product line defy the price slump that is weighing on other suppliers, as the industry battles with rising capacity that threatens to accelerate deflationary forces during a period of weakening global demand.

Based in Xi’an, the capital of Shaanxi province in central China, Longi believes the higher efficiency of its monocrystalline silicon wafer technology will emerge as the dominant industry standard, as the less efficient competitors fail to win the hearts and minds of consumers.

Longi, the world’s largest producer of monocrystalline silicon wafers, is listed in Shanghai.

In February the company unveiled a three-year plan to triple its production capacity, from 15 gigawatts late last year to 28GW late this year, 36GW late next year and 45GW by the end of 2020. 

“We expect our products will see huge global demand because monocrystalline products have been gaining market share steadily in the past three years as technological advances cut production costs and product prices,” said Amy Ma, a spokeswoman for the company. 

“On a kilo-watt-hour [power output] basis, monocrystalline products have an absolute cost advantage in the market.” 

While declining to divulge the geographical split of the expansion plan, Ma noted it has recently opened a 10GW-a-year plant in Yunnan province where it enjoys local government incentives.