(Yicai Global) Oct. 31 -- The cost of polycrystalline silicon, a raw material used in the solar photovoltaic industry polysilicon, will fall to USD8 per kilogram from the current USD15 per kilogram, enabling solar power prices to reach grid parity within the next five years, Mr. Zhu Gongshan, chairman of the world's largest photovoltaic material manufacturer Golden Concord Holdings Ltd., said yesterday.
An important turning point will come in 2020. "Hopefully the solar power industry will no longer rely on Chinese government subsidies by then. I believe we can do it," Mr. Zhu said.
"The ultimate goal is to generate solar power at grid parity," Mr. Zhu said. The price of polysilicon has been on the decline. At its peak, it cost over USD100 per kilogram but slumped to USD15.3 per kilogram in the first half of this year.
GCL produces 100,000 tons of polysilicon and 20 gigawatts of silicon slices a year. Innovations by the Shanghai-based firm's subsidiary GCL-Poly Energy Holdings Ltd. [HKG:3800] have succeeded in bringing about a 10 percent reduction in the cost of polysilicon and silicon slices at the company every year, Mr. Zhu Zhanjun, CEO of GCL-Poly Energy, told Yicai Global. He is confident that the company will manage to maintain this rate of reduction in the future, if not exceed it.
Another subsidiary, GCL New Energy Holdings Ltd. [HKG:0451] had installed 2,735 megawatts of PV power plants across China as of June this year.