(Bloomberg) -- Longi Green Energy Technology Co. delayed the start of a 15-gigawatt solar module factory in eastern China by 18 months as the sector faces overcapacity and a fierce price war.
The project in the city of Wuhu in Anhui province is now expected to be operational in June 2026, the company said in a filing on Tuesday. The 3 billion yuan ($414 million) investment had originally been planned to start this month.
Longi said it risked income uncertainty in the near term if it had pushed ahead with the Wuhu plant, as there is an “imbalance between supply and demand in the photovoltaic industry.”
The delay comes after more than than 30 of China’s top producers signed an agreement earlier this month that would see them receive production quotas for next year, similar to how OPEC manages oil supply. There’s currently enough capacity to build more than 1,100 gigawatts of panels a year — nearly double what the world is expected to have installed in 2024 and more than it’s going to need as far out as 2035, according to BloombergNEF forecasts.
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