Skip to content

World’s Biggest Solar Firm Sees Profits Hurt by Power Hike

  • Yunnan cancels preferential power rates Longi had since 2016
  • Increased costs comes amid solar supply chain inflation
A solar power plant co-owned by Longi Green Energy Technology Co., in Shaanxi Province, China.

A solar power plant co-owned by Longi Green Energy Technology Co., in Shaanxi Province, China.

Photographer: Qilai Shen/Bloomberg
Updated on

Longi Green Energy Technology Co., the world’s largest solar company, said its profits will be cut by higher power costs at one of its key manufacturing hubs in China.

Yunnan province, home to 54% of the company’s wafering capacity, canceled the preferential electricity prices it had been offering Longi since 2016, the firm said in an exchange filing Tuesday. Wafers are the ultra-thin slices of polysilicon that get wired up and assembled into solar panels, and Longi is the world’s biggest producer of them, according to BloombergNEF