How to control procurement costs for photovoltaic glass?

Photovoltaic (PV) glass is the second-largest material cost component for PV modules, ranking just behind solar cells. In 2026, the industry underwent a cycle characterized by deep losses, accelerated cold repairs of production lines, and a price rebound from rock-bottom levels.
In the first half of the year, the average price of 2.0mm PV glass fell to 9.65 yuan/m²—a 25% year-on-year drop—while inventory levels hit a record high of 53.4 days in May.
Prices were raised in three consecutive rounds starting in August, and by September, listed prices had returned to the 10.5–11.5 yuan/m² range.
For purchasers, controlling costs hinges on three key factors: timing, glass thickness, and negotiation with leading suppliers.

I. The Role of Procurement Costs in PV Modules

• PV glass (ultra-clear rolled tempered glass) is a core material for module encapsulation, providing light transmission, load resistance, and durability for over 25 years of outdoor service.
  Its flexural strength exceeds 120 MPa—three to five times that of ordinary flat glass (Source: Tempered PV Glass Industry Report).
• Glass accounts for approximately 10% to 15% of total module costs;
  its price elasticity directly impacts module quotes and gross margins.
• The market penetration of bifacial glass-glass modules is rising rapidly: reaching 58.3% in 2025 and projected to hit 60% in 2026. This growth has driven a nearly 20% year-on-year increase in demand for glass with thicknesses of 3.2mm or less (Source: Ultra-clear Rolled Glass Industry Report).
• By eliminating the need for backsheets and enhancing durability, glass-glass modules now account for over 30% of new installations in Europe and China, effectively doubling the volume of glass required per module (Source: International PV Glass Market Analysis).

II. 2026 Price Cycle: Trough Passed, Rebound Underway

• In the first half of 2026, the average price of 2.0mm PV glass was approximately 9.65 RMB/m² (down 25% year-on-year). Industry inventory hit a record high of 53.4 days in May, with the price of 2.0mm glass dipping to a low of 8.0–8.5 RMB/m²;
  the entire industry fell into a state of cash-flow loss (Source: Zhuochuang Information and brokerage research reports).
• Deep losses forced an acceleration of production line cold repairs: Year-to-date in 2026, the industry has cold-repaired lines with a total capacity of approximately 19,600 tons, corresponding to an annualized module demand of about 127 GW.
• Supply contraction drove price recovery: Prices rose three times—in mid-July, early August, and early September.
  By September 10, the price of 2.0mm glass had recovered to 10.25 RMB/m², a 24% increase from the previous low.
• Industry-wide listed prices as of September 1: 2.0mm single-coated glass at 10.5 RMB/m²; 2.0mm double-coated glass at 11.5 RMB/m²;
  and 3.2mm single-coated glass at 17–19 RMB/m² (Source: Industry price monitoring).
• At current price levels, cash costs are 8.5–9 RMB/m² for leading enterprises, 11–12 RMB/m² for second-tier firms, and over 12 RMB/m² for third-tier firms; second- and third-tier companies remain loss-making, leaving room for further supply contraction.

III. Supply-Demand Landscape: Capacity Clearance Nears Completion

• As of September 10, 2026, global and domestic nominal operating capacities for photovoltaic (PV) glass stood at approximately 85,000 tons and 72,000 tons, respectively, corresponding to annualized module demand of roughly 553 GW and 466 GW.
• Inventory levels (in days) dropped from a peak of 53.4 days to 44.69 days by September 10—a decline of approximately 16%—having previously retreated to 45.65 days on August 20.
• Among capacity currently undergoing cold repair, approximately 33,000 tons (comprising furnaces with capacities under 700 tons/day or those with no active production) can be considered effectively cleared from the market;
  industry concentration is expected to rise further (Source: Brokerage in-depth report on PV glass).
• Active furnaces with capacities under 1,000 tons/day total 5,900 tons;
  these are primarily concentrated among second- and third-tier enterprises, and there is a high probability of this capacity shutting down given persistently low prices.
• Resuming production requires cold repair (replacing refractory materials) and a 3-to-6-month ramp-up period;
  once ignited, output is rigid and difficult to adjust, resulting in limited short-term supply elasticity.

IV.
Trend Toward Thinner Glass: Reduced Material Usage and Lower Cost Per Watt

• The market share of 2.0mm glass surged from 40% in 2021 to 67% in 2023, while shipments of 1.6mm glass reached 38.6% in 2025 (Source: Industry report on tempered PV glass).
• In 2025, the average price of 2.0mm ultra-clear rolled glass was 18.9 yuan/m² (up 5.0% year-on-year), and the average price of 3.2mm glass was 26.4 yuan/m² (up 2.0%);
  the shift toward thinner glass helped offset some of the price increases (Source: Industry report on ultra-clear rolled glass).
• In the international market, the price of 2.0mm coated glass was approximately $1.82/m² in 2025 but dropped to about $1.30/m² in early 2026 due to inventory pressure; the price of 3.2mm glass fell from $2.83/m² to $2.40/m² (Source: Global PV Glass Market Report).
• Mass production of 1.6–2.0mm ultra-thin rolled glass now accounts for 24.1% of the total;
  leading companies have achieved stable mass production of 1.4mm glass, while 1.2mm glass has entered the pilot testing stage.
• The reduction in glass thickness and weight directly lowers module weight as well as packaging and logistics costs;
  procurement decisions should comprehensively evaluate both light transmittance and yield rates.

V. Cost Structure: Raw Materials and Fuel Determine the Price Floor

• In 2025, the industry’s average unit production cost was approximately 24.7 RMB/m²;
  raw materials (such as soda ash and quartz sand) accounted for 53.6%, natural gas fuel for 21.4%, and labor and depreciation for 25.0% (Source: Tempered PV Glass Industry Report).
• Upstream soda ash prices fell by 8.2% year-on-year in 2025, and quartz sand prices retreated, creating room for glass price reductions;
  notably, soda ash prices had risen by 7% in a single quarter in early 2024, demonstrating rapid cost pass-through.
• Energy consumption is a key variable: the waste heat recovery rate for melting furnaces rose from 42.3% in 2022 to 58.6% in 2025, and the recycling rate for waste glass reached 94.2%.
• Daily furnace melting capacity and operating rates directly determine supply: the industry’s operating daily melting capacity dropped from a peak of 89,700 tons/day to 75,800 tons/day, with 7,750 tons/day of capacity undergoing cold repair between June and July.
• The longer prices remain below the cost line, the more thorough the capacity exit;
  buyers need to identify the price floor range near the cash cost line.

VI. Market Landscape: Bargaining Power Concentrated Among the Top Five

• Five companies—Xinyi Solar, Flat Glass, CSG Holding (CSG A), Kibing Group, and Luoyang Glass—hold a combined market share of 63.5%.
  Xinyi Solar leads with 28.6%, followed by Flat Glass (25.3%) and CSG Holding (16.9%) (Source: Industry Report on Ultra-clear Rolled Glass).
• Xinyi Solar and Flat Glass together account for 51.3% of domestic nominal capacity for tempered photovoltaic (PV) glass;
  their scale of production creates a cost advantage.
• Leading players generally pursue vertical integration into upstream operations: Xinyi Solar’s self-supply ratio for quartz sand is 41% (projected for 2025), Flat Glass’s raw material self-sufficiency rate is 38.5%, and CSG Holding maintains iron content below 82 ppm to support a premium price for high-end products.
• In 2025, the average price for 1.6mm glass was 28.4 RMB/m² (down 3.7% year-on-year), but it rebounded to 29.1 RMB/m² by April 2026, with prices for products from leading manufacturers being the first to stabilize.
• The industry’s gross profit margin recovered to 22.7%—an increase of 3.4 percentage points from 2024—though second- and third-tier players are still experiencing negative cash flow;
  procurement strategies should prioritize long-term agreements with leading manufacturers.

VII.
International Procurement and Pricing Benchmarks

• The global market for ultra-clear rolled glass was valued at approximately $6.327 billion in 2025 and is projected to reach $8.578 billion by 2034, representing a compound annual growth rate (CAGR) of 4.5% (Source: International PV Glass Market Report).
• China accounts for over 60% of global PV glass production capacity;
  the landed cost for overseas procurement includes shipping and tariffs, resulting in a potential price spread of 10% to 20% compared to spot market prices.
• International platform quotes: 3.2mm low-iron tempered PV glass is approximately $1.23–$2.54 per square meter, while 2.0mm glass is around $1.30–$1.50 (Source: foreign trade platform quotes).
• PV glass light transmittance can reach 94% after tempering and double-sided AR coating, with AR reflectivity below 2%;
  power generation gains should be factored in based on transmittance when purchasing.
• For projects exporting to the EU, pay attention to the Carbon Border Adjustment Mechanism (CBAM) and localization requirements;
  cost calculations should include compliance costs.

Procurement Recommendations

• During periods of rising prices, prioritize locking in fixed-price long-term agreements for Q4 and Q1 2027, while using a hybrid pricing model (fixed plus floating) for a portion of the volume.
• Determine the price floor based on cash costs: the cash cost of 8.5–9 RMB/m² for leading manufacturers serves as a key support level for 2.0mm glass.
• Accelerate the adoption of 2.0mm (or even 1.6mm) glass to offset unit price increases through reduced material weight, while simultaneously evaluating the price spread between double-sided coated glass and back-sheet glass.
• Sign annual volume-price agreements with leading enterprises;
  leverage volumes exceeding 5,000 tons to secure discounts of 5%–15% and mandate quarterly price adjustment clauses.
• Establish a mechanism linking inventory levels to pricing: adopt a “wait-and-see” approach to drive down prices when inventory exceeds 45 days, and increase volume locking when inventory drops below 35 days.