Some first-tier China-based PV module firms have asked Taiwan solar cell makers to supply products on credit from, and the suppliers are considering whether to accept the requests, according to industry sources.
These China-based PV module firms made significant profits in 2014 and expect to remain profitable in 2015 as the China government has set a goal of new installations around China at 17.8GWp for rooftop PV systems and power-generating stations in the year, the sources said. As they feel that their business credit has increased, they have asked Taiwan solar cell makers to give them supplies on credit in order to have more cash on hand to enable flexible use of funds, the sources indicated.
However, even multinational enterprises operating in China have so far required payment in cash or letters of credit for trade with China-based PV makers to avoid default in payment, the sources said.
Most of Taiwan's solar cell makers have seen losses and such requests from the China firms may expose them to risks, the sources indicated.
